GenCos, through the Association of Power Generation Companies (APGC), maintain that DisCos refuse to take power that is already generated and transmitted to the grid.
The rejection leaves power stranded. GenCos claim that because they are not paid for this “unused” capacity, they face severe financial constraints, making it impossible to pay gas suppliers or maintain infrastructure.
GenCos have reported that the sector’s debt has risen significantly, with claims reaching over N6 trillion for power generated since 2015 partly due to this lack of uptake.
GenCos argue that DisCos prioritize profit in certain areas, rejecting load in regions where they claim they cannot easily collect revenue from customers.
DisCos often argue that their distribution networks are weak and cannot absorb the full capacity transmitted from the Transmission Company of Nigeria (TCN).
DisCos contend that they can only pick up power that can be sold and paid for, arguing that picking up all available power would lead to higher commercial losses, especially in areas with poor collection rates.
Some DisCos have argued that “load rejection” is a misrepresentation by the System Operator (SO), claiming that they are not being supplied the amount of electricity they requested.
ANED (Association of Nigerian Electricity Distributors) has pointed out that power distribution is ultimately limited by the power that TCN can successfully wheel to them.
The refusal to take load often leads to high frequency on the grid, resulting in total or partial system collapses.
The Nigerian Electricity Regulatory Commission (NERC) has, at various times, threatened to penalize DisCos for rejecting load, as this violates established market rules.
The Federal Government has intervened with initiatives like the Payment Assurance Facility and investigations to verify the claims and improve infrastructure, with efforts currently focused on settling debts to clear up the power supply chain.
This perpetual “blame game” highlights deep structural issues within the Nigerian power sector, including capacity, infrastructure, and commercial viability across the value chain.
