KEDCO demands N3.2 bn from TCN over alleged wrong charges

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Transmission Company of Nigeria (TCN)
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By Abbas Bamalli

Kano – Kano Electricity Distribution Company (KEDCO) has urged the Transmission Company of Nigeria (TCN) to immediately credit the it with N3.2 billion, saying this was instructed by the Nigerian Electricity Regulatory Commission (NERC).

The Head, Corporate Communication, TCN, Kano, Malam Ibrahim Sani-Shawai disclosed this in a statement issued in Kano on Saturday.

According to him, NERC passed a resolution on Sept. 27, 2016 based on market rule, directing TCN to credit KEDCO with N3.2 billion for imbalance compensation and wrong meter readings from TCN.

He added that the resolution came as a result of TCN’s mistakes where KEDCO was over invoiced for other DisCos’ energy consumption.

“It should be noted that KEDCO has the capacity to increase the Letter Credit (LC) to meet TCN target according to the rules, but KEDCO decided not to, in view of certain rules and regulation governing the Power Regulation Commission (PRC).

“According to the law, TCN is supposed to supply power to KEDCO at eight per cent as approved by Multi Year Tarriif Order (MYTO) allocation.

“But that was not achieved, as maximum of only five to six per cent was received from the grid, where the shortfall constituted part of our revenue requirement as an entity,” he said.

According to Sani-Shawai, the N3.2 billion comprises an imbalance of over N2.390 billion between January, 2015 and June, 2015 and the wrong meter reading put at N858 million.

He added that this put together, was the amount that NERC directed TCN to credit KEDCO after the verdict was given in 2016.

“However, the processes that culminated in the verdict actually started in 2014. This has been a long battle and victory given, but it has yet to be enjoyed by KEDCO. It is said that justice delayed is justice denied.

“The N3.2 billion would have yielded good interests since 2016 if it had been given to KEDCO for its investment in the power distribution franchise,” he said.

Sani-Shawai lamented that more than three years after, TCN had yet to obey the decison.

“If the market in the power sector was rule-governed, there should be no reason for TCN not to obey the judgement even when they were so quick to issue out suspension to KEDCO.

“With the huge MDA debts not yet paid for years, it continues to accumulate on monthly basis where its wheeling charges are demanded in full by market operator.

“This led to KEDCO’s suspension from the market by market operator and punishment meted to our customers.

“The attitude of TCN is very unbecoming; it portrays it as being disobedient to the rule of law,” he said.

Contacted, TCN Assistant General Manager in Kano, Engr Haruna Aminu, said he did not know anything about the matter.


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