Infractions of the market regulations would result in sanctions, according to the Transmission Company of Nigeria (TCN).
Operators in the power sector are the generation, transmission, and distribution companies.
The partial or whole disconnection of defaulters from their point of connection to the grid would be one of the repercussions, according to a statement released on Tuesday by Edmund Eje, the Market Operator (MO) for TCN.
Mr. Edmund Eje, the Market Operator (MO) of TCN, issued the warning yesterday in Abuja, stating that one of the effects of the sanctions would be the partial or whole disconnections of defaulters from their points of grid connection.
According to the MO, it makes sense that some of the players who have been sanctioned would try to politicize the situation to garner quick points and incite unwarranted emotions.
However, he cautioned consumers to pay attention to the actual concerns, which are the effectiveness and continued existence of the Electricity Supply Industry (NESI).
“NESI is governed by rules which are necessary for the viability and sustainability of the sector. And such rules are sacrosanct and must be complied with by all existing or new players in the sector.
“Essentially, the players in the power sector are the generation, transmission, and distribution companies.
“For all the players to interact effectively and create the requisite harmony for growth, efficiency, profitability, and of course, continued sustenance of the sector.
“The rules set for governance and regulation of relationships between all in the sector must be obeyed and upheld,” he said.
Eje said some of these rules are domiciled with the MO, adding that adherence to the Market Rule is below expectation.
He said NESI market indiscipline was one of the major factors dealing a disastrous blow to the scalability and growth of the market.
“Participation Agreement is signed by all participants, but to comply with them is usually an uphill task for many. If the rules of every game are observed, there would be no need for sanctions,” he said.
On the suspension procedure, he explained that when a participant violates the market rules, the MO would first notify the participant in writing, specifying the violation and requesting that corrective action be taken within a specified period.
Eje said if the participant failed to comply with the notice, the MO may issue a notice of intention to suspend a participant’s access to the market.
“This notice will specify the reasons for the intended suspension, the proposed duration of the suspension, and the conditions for lifting the suspension.
“If the participant still fails to comply with the “Notice of Intention to Suspend’, the Market Operator may issue a ‘Notice of Suspension’, which may last for 30 business days.
“After the suspension period, the participant may apply for reinstatement by providing evidence of compliance with the market rules and any other conditions specified in the ‘Notice of Suspension’.
“The MO will review the application and decide on whether to lift the suspension or not,” the statement read in part.