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Ajaokuta Steel Company risks disconnection over N1.27b energy debt

By Tope Olaiya
21 August 2024   |   9:27 pm
  The moribund Ajaokuta Steel Company Limited risks being disconnected from the power grid over its failure to pay the N1.27 billion electricity debt it incurred in the first three months of the year. The Nigerian Electricity Regulatory Commission (NERC) said Ajaokuta Steel Company and the host community did not make any payment towards the…

 

Ajaokuta Steel Company
The moribund Ajaokuta Steel Company Limited risks being disconnected from the power grid over its failure to pay the N1.27 billion electricity debt it incurred in the first three months of the year.
The Nigerian Electricity Regulatory Commission (NERC) said Ajaokuta Steel Company and the host community did not make any payment towards the N1.27bn of Nigerian Bulk Electricity Trading Plc and ₦0.09bn of Market Operator invoices received in January, February and March 2024.
The commission expressed displeasure that the trend of non-payment by the steel company has continued for a long time.
It added that the Federal Government has been urged to intervene to avoid total disconnection from the grid.
“This continues a longstanding trend of non-payment by this customer and the commission has communicated the need for intervention on this issue to the relevant FGN authorities. A continuation of the non-payment may trigger total disconnection from the grid,” the commission stated.
In January, the TCN disconnected ASCL from the national grid as the moribund company failed to clear a debt of N33bn owed to the NBET and service providers which was later reconnected after various interventions from the government.
The N33 billion comprises N30.85 billion for energy and capacity delivered by NBET and N2.22 billion owed to service providers.

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