The Federal Government has announced the disconnection of some power firms from the national grid due to their non-adherence to the Electricity Market Rules.

The Nigeria Electricity Supply Industry is governed by rules that are necessary for the viability and sustainability of the sector. These rules are considered sacrosanct and must be complied with by all existing or new players in the sector, according to the Federal Government.

Although the government did not name the specific power plants that are affected, it emphasized that all players in the power sector, including electricity generation, transmission, and distribution companies, must comply with these rules for effective interaction, harmony, growth, efficiency, and profitability of the sector.

The disconnection of power firms from the national grid is a consequence of their failure to adhere to these rules, which are essential for the proper functioning of the electricity market in Nigeria.

“Some of these rules are domiciled with the Market Operator, but today, adherence to the Market Rule is below expectation,” the Market Operator, an arm of the Federal Government’s Transmission Company of Nigeria, Dr Edmund Eje, said in a statement issued in Abuja.

He added, “NESI market indiscipline is one of the major factors dealing a disastrous blow to the scalability and growth of the market.

“Market Participation Agreement is signed by all participants, but to comply with them is usually an uphill task for many. If the rules of every game are observed, there would be no need for sanctions.

“Currently, the Market Operator – TCN, is embarking on sanctioning erring market participants, having given them notices and time to comply with the market rules. One of the fallouts of the sanctions will be the partial or complete disconnection of defaulters from their point of connection to the grid.”