Unpaid Bills: TCN Issues 14-Day Suspension Notice to Ajaokuta Steel Company Ltd

The Transmission Company of Nigeria (TCN) has taken decisive action against Ajaokuta Steel Company Limited (ASCL) due to non-compliance with market rules, issuing a 14-day disconnection notice.  According to TCN’s statement, ASCL has accumulated a substantial debt of N33.71 billion as of November 2023, with N30.85 billion owed for energy and capacity supplied by Nigerian Bulk Electricity Trading PLC (NBET) and N2.22 billion to service providers. Despite prior notifications and interventions by the Minister of Power to rectify the defaults, ASCL’s non-compliance remains unresolved.  TCN has demanded the settlement of outstanding invoices and the provision of bank guarantees within the specified 14-day period to avoid disconnection from the National Grid, as per Section 45 of the Market Rules. Failure to rectify these defaults within the stipulated timeframe may lead to disconnection, and if left unresolved after 30 business days, the Market Operator may terminate ASCL’s Market Participation Agreement, escalating the matter to the Nigerian Electricity Regulatory Commission (NERC) for further action. This action by TCN follows a hint in the NERC’s 2022 annual report regarding the potential disconnection of Ajaokuta Steel from the national grid due to its significant indebtedness of N25.06 billion.

Subsidy: FG provides solar alternative power to Nigerians

The Managing Director/Chief Executive Officer of Rural Electrification Agency (REA), Engr. Ahmad Salihijo Ahmad on Friday, said the Federal Government is providing solar energy alternatives to Nigerians in a bid to cushion the effect of subsidy removal on businesses and households. Ahmad, who was speaking after the inspection of REA’s Energizing Economies Initiative (EEI) project in Ayegbaju International Market, Osogbo, said the Federal Government, through REA, is setting up alternative solar energy systems to cater to electricity-underserved Nigerians. He also explained that the concept of the EEI project was to provide alternative and clean solar energy to Nigerians, so as to reduce or abolish the use of carbon monoxide petrol-powered generators. “We came to our Zonal office in Osun and we decided to do a short inspection of the Energizing Economies Initiative (EEI) that we have in Ayegbaju International Market, Osogbo. “We came to see the progress of the work and we are very happy with what we have seen here today. “The concept is to see how we can work with the market association and most importantly, work with the state government to scale up solar power supply to the whole market,” he said. He said the construction of the solar system at the Ayegbaju Market is about 95 percent completed and that the power generation of the system is targeted at 30kwp. He said at the pilot phase now, the solar power electricity is being test run on 48 shops and that in the long run, it would be extended to all the shops in the market. He said with the interaction he had with the leadership of the market, shop owners are interested in the solar power project, as an alternative power source to run their operations/shops. “What we have seen is the tremendous interest of the market people in the solar energy alternative, especially using it to replace petrol generators, in the face of subsidy removal,” he said. He said as a follow up to the inspection and interaction with the market people, he would meet and work with developers, Osun State Government and even the market association, to draw a roadmap of how the project would be sustained and scaled up to cover the entire market. He said with the solar system initiative, REA has been able to demonstrate a concept of solar power generation and supply, and that they can now bring in and work with other stakeholders to scale it up to the demand of Nigerians who are unserved and undeserved with electricity. “Over 148 sites have been audited directly by REA,” saying “support from partners, such as E-guide and Rockefeller Foundation, will enhance the Energizing Economies Initiative (EEI) project. “It is from these sites that Ayegbaju International Market, Osogbo, and Abubakar Gumi Market, Kaduna, were selected to deliver the next phase of EEI projects,” he said. He said they are taking into account the lessons learned from phase zero and one of the project initiatives and would use it as a model for sustainable and collaborative projects with state governments and Electricity Distribution Companies (DisCos). “Once the solar system construction is completed, the State Governments or DisCos, developers, and REA will be able to sit with the Market Associations to sign a multilateral agreement which ensures the long-term viability of the project while ensuring energy access to the markets. “These projects will also provide the much-needed relief to businesses in these markets by reducing their dependence on petrol generators while increasing the penetration of renewable energy sources,” he said.