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KEDCO Demands Immediate Payment Of N3.2 Billion Debt From TCN

The Kano Electricity Distribution Company (KEDCO) has demanded the payment of N3.2bn from the Transmission Company of Nigeria (TCN), in line with a judgment passed by the Nigerian Electricity Regulatory Commission on September 27th, 2016.

KEDCO made this demand via a statement it issued on Friday.

A copy of the statement which was signed by the company’s Head, Corporate Communications, Ibrahim Shawai.

The electricity distribution company has had a running battle with the TCN over adherence to rules guiding operations in the electricity market.

The TCN had on August 20 announced the suspension of KEDCO from the market and threatened further sanctions should the company fail to address concerns raised by the TCN within 30 days.

However, KEDCO is demanding that the TCN should comply with the judgment to enable it to meet its obligations to consumers.

The KEDCO statement read in part, “The Nigerian Electricity Regulatory Commission had passed a judgment on Sept. 27, 2016 based on Market Rule directing the TCN to credit KEDCO with the sum of N3.2bn for imbalance compensation and wrong meter readings from the TCN respectively from their mistakes where KEDCO was over- invoiced for other Discos’ energy consumption.

“The N3.2bn comprises of an imbalance of N2, 390, 310,793.83bn between January 2015 and June 2015 and the wrong meter reading is put at N858m.

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“This put together was the amount that NERC directed TCN to credit KEDCO since the verdict was given in 2016. However the processes that culminated to the verdict actually started in 2014.

“This has been a long battle and victory given but yet to be enjoyed by KEDCO and it is said that justice delayed is justice denied.

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

The TCN had suspended KEDCO and disconnected two feeders citing the distribution company’s failure to remit 100 per cent ancillary services payment for May and June as reason for its action.

Source: Punch

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