TCN Threatens Defaulters As N80bn Outstanding Debt Weighs Down Electricity Market Operations

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TCN Threatens Defaulters As N80bn Outstanding Debt Weighs Down Electricity Market Operations - Latest News

He explained that TCN operates on self-sustenance basis, and thus depends mainly on its Internally Generated Revenue even for its overheads and most of its major projects.

“By December 2016, the MO was on 15 per cent collection and catering for overheads became a herculean task. By December, 2019, the outstanding on MO’s services invoice stood at N443 billion with interest. He said the major default here is failure to put up a valid Bank Guarantee and also failing to clear their outstanding debts with MO.

He emphasised that the MO did not demand anything outside the Market Agreement they voluntarily signed, noting that Distribution companies also embark on load disconnection during their revenue drive. He streesed that investors should not embark on using trust fund they reck in on behalf of the Market to settle their bank loans and render other operators in the value-chain ineffective due to poor remittance.

”Essentially, the players in the power sector are the generators, transmission, and distribution companies. He said that NESI market indiscipline was one of the major factors dealing a disastrous blow to the scalability and growth of the market.

 

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