The federal government has approved the injection of N600 billion into the country’s electricity market, Transmission Company of Nigeria (TCN) said on Wednesday.
Speaking with journalists at the Interactive Forum for Market Agents in the Third Quarter (MO) / Key Participants of 2019 in Abuja, his MO, Edmund Axis, said the fund will be disbursed shortly.
According to him, the intervention is for the payment of the electricity bills deficit for the entire market.
He said the intervention is not limited to a single chain in the market, but to a holistic one.
He said: “The intervention is at a very advanced level. It was signed by President Muhammadu Buhari “.
Axis recalled that since 2015 the outstanding invoice registered by the distribution companies (DisCos) is around N250 billion.
Meanwhile, the decision was that the government should not have reversed the privatization of distribution companies, but instead invoked its regulatory strength to bring debtors online.
He added that as of May of this year, the MO has decided that all market participants should make sure their books are up to date or that they will be informed that they will pay or suffer a fine of N5.6 million after five days.
Axis said that if the company did not pay within another five days, it would result in a suspension from the market.
He said: “The outstanding bill on the DisCos is approximately N250billion. Until May when we said okay, instead of allowing the government to say we are going to fold the privatisation completely, let us use regulation out of the way. If you fail out of the way, you will not blame the government to say the government has seized your license.
“From May we said every participant in the market has to pay 100 per cent. For paying 100 per cent, you will also mention that your bank guarantee is updated. Now, those of them that were not updated require a fine. We will inform them that it invoked a fine of N5.6million.
“And you are given five days to fix whatever the default and within that five days you are expected to update your bank guarantee if it is not, you also make it good. If you fail to do it within these five days, we suspend you from the market.
“Now market will empower the market operator to disconnect you from the grid. Now you know it is difficult to disconnect a distribution company from the grid you have obedient companies who have been paying