The Federal Government and all operators in the power sector have instructed the Nigerian Electricity Regulatory Commission (NERC) to penalize distribution companies that reject the electricity quota allocated to them by the Transmission Company of Nigeria.
Though NERC has threatened to sanction Discos that reject power allocations, but it has failed to publish defaulters who have been sanctioned as a result of the offence, thereby prompting assumptions that it has not been able to penalise any distribution company for rejecting electricity allocation quota.
NERC has been blasted by gas and electricity operators for lagging in their duties.
The TCN has repeatedly complained that power distribution companies are rejecting electricity allocated to them despite poor supply across the country, adding that this was the major reason why the generation companies were asked to reduce the quantum of electricity being supplied to the grid.
Therefore in a bid to address this, the Federal Government and other operators in the power value chain have unanimously mandated NERC to wield the big stick against the Discos that reject electricity allocated to them by the transmission company.
The order was given to the regulatory agency at the 14th monthly power sector meeting held in April this year by the Minister of Power, Works and Housing, Mr. Babatunde Fashola.
A senior management official of one the power generation companies, who was present at the meeting and who made available the action/task log and minutes of the meeting in Abuja on Friday, stated that the forum directed NERC to as a matter of urgency sanction the errant Discos.
“The load rejection by the Discos is becoming alarming and shouldn’t be allowed to continue if this sector must make a headway. This is why everyone at the meeting unanimously agreed that henceforth, NERC must sanction those who reject power,” the official said in confidence.