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TSA: NERC threatens MO over compliance



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The Nigerian Electricity Regulatory Commission (NERC) has threatened to sanction any market operator that fails to comply with the directive of the federal government on the Treasury Single Account implementation.
This was contained in the Notices of Commencement of Enforcement Action on Market Operator by NERC’s head head of Public Affairs, Dr. Usman Abba-Aabi in Abuja.
According to NERC, MO is a division of the Transmission Company of Nigeria (TCN) that issues market settlements and invoices due to the market participants and service providers in the Nigerian Electricity Supply Industry (NESI), while TCN, which is currently under contract management of Manitoba Hydro of Canada, is a licensee of NERC
The notice gave the erring MO seven days ultimatum to take remedial actions by winding down operation of the unilateral bank account and report compliance, failure which it faces disciplinary action from the Commission.
The statement explains that TCN licence empowers it to manage the Market Operator (MO) and the System Operator (SO), which is responsible for the wheeling of electrons (electricity) from generation to electricity distribution companies.
The market operator, which incidentally partly manages cash flow in the electricity market reacted by opening a separate bank account other than the one known to TCN. The matter was subsequently brought before the Commission at its August 19, 2015 regulatory meeting.
The statement partly reads, ‘in separate notices signed by the Deputy General Manager, Enforcement Unit, NERC, MrChijioke Obi, parties were told that their continued actions were in disobedience to Section 63(1) of the Electric Power Sector Reform (EPSR) Act 2005 which stipulates, “A licensee shall comply with the provisions of his licence, regulation, codes, and other requirements issued by the Commission from time to time.”
Parties were consequently issued directives on August 27, 2015, to take remedial actions which they are yet to comply with.