The Market Operator (MO), an arm of the Transmission Company of Nigeria (TCN), will henceforth penalise operators who fail to comply with the market rules in the Nigerian Electricity Market (NEM).
The Market Operator, Mr Moshood Saleema, announced this at a stakeholders’ workshop in Abuja last Thursday.
The Market Operator is the commercial administrator of the NEM.
It has the mandate of ensuring fair-play and non-discriminatory market administration to all electricity market participants.
Its major mandate is the administration on wholesale electricity market, including the activity of administration of settlement, in accordance with market rules.
Stakeholders operating in the market included Electricity Generating Companies (GENCOS,) Transmission Service Provider (TSP) Electricity Distribution Companies (DISCOS) and Nigerian Bulk Electricity Trading Company (NBET).
The workshop, with the theme “Eliminating Blame Games in Nigerian Electricity Market”, is designed to evolve measures of recovering revenue for the electricity value-chain in the country.
Saleema said that the meeting became necessary due to the infrastructure and liquidity challenges preventing the market from developing its potential.
He said lots of blame games were being traded in the market by the operators, adding that games had not solved the challenges in the power sector.
According to him, what will solve the problem is the collective ability to take appropriate actions within the various areas of the operators’ responsibilities.
He said that the operators had the responsibility of building an efficient and sustainable electricity market.
The MO also said that critical to the success of the market and the entire industry were issues of transparency and compliance with relevant rules and codes in the market.
He said that it was important that stakeholders played to the rules governing the market.
This, Saleeman said, would result in the ability of the sector to harness the huge non-utilised generation capacity.
He said abiding by the laws would help accelerate completion of critical transmission infrastructure projects, reinforcement and expansion of distribution networks.
On remittance by DISCOs, Saleeman said there was now a significant improvement on the transfer of revenue collected by the DISCOs on behalf of the chain.
Source: The Tide