The Transmission Company of Nigeria (TCN) has recommended liquidation of one of the 11 power distribution companies (DisCos) to the Federal Government.
The Managing Director of TCN, Usman Mohammed on Thursday in Abuja, said the recommendation follows the failure of not abiding by market rules.
“When you cannot abide by the market rules, then you are making things tough for the market, which is why TCN has recommended that one of the DisCos should be liquidated as a result of non-performance.
“The market has to be driven by rules and regulations. People must comply with the rules and there must be sanctions for non-performance and reward for extra-ordinary performance.
“If the market is existing in such a way that anybody who does not perform can get away with it, then there’s no way that market can grow. And our belief is that this our market should grow by all means,” he said.
However, the identity of the distribution company was not revealed.
The Managing Director further noted that the recent enforcement of market rules by the Market Operator had made it possible for participants who do not know the market rules to start reading the laws that guide operations in the sector.
“There are many people in the market who are supposed to know the rule but they do not understand the rule and this include participant. This is because I’ve seen situations where people write letters that do not make sense.
“When you write a letter, for example, to the Market Operator to say, ‘I will not be able to pay.’ That has an implication. If you will not be able to pay within the market that means you should be liquidated.”