The Transmission Company of Nigeria (TCN) has formally issued a suspension notice to the Abuja Electricity Distribution Company (AEDC) due to alleged violations of market regulations and a failure to furnish the Market Operator (MO) with a sufficient Bank Guarantee in accordance with Section 15.3.3 of the MO’s guidelines.
The transmission company announced in a press release on Friday that the disconnection from the national grid is scheduled to take place on the 28th of July, at the 33Kv Feeder connecting to the 132/33Kv Katampe 1 Transmission Station and the 33Kv Feeder 3 at the 132/33Kv Central Area Transmission Station.
The TCN, in the press release signed by Ali Bukar Ahmad, stated that it had previously communicated its concerns regarding AEDC’s non-compliance with market rules through written notices.
These include a “request for the fulfilment of Prudential Requirement dated 13/Feb/2024,” a “Notice of Event of Default: Non-fulfilment of Prudential Requirement dated 22/Mar/2024,” and a “Notice of Intent to Issue a Suspension Order: Non-provision of Adequate Bank Guarantee dated 8/Apr/2024.”
It stressed that the notices requested that corrective actions be taken within a specified period to avoid the default.
“In spite of all notifications, AEDC failed to cure this default. In view of this non-compliance, AEDC is hereby suspended from the MO Administered Electricity Market. No new contract or agreement shall be entered into with AEDC within the suspension period.”
TCN declared that in order to correct the circumstances, AEDC is required to furnish a sufficient bank guarantee within a period of five business days following the issuance of the notice.
“If, after five days, this default is not cured, AEDC’s network may be partially or totally disconnected from the grid in line with Section 45 of the Market Rules. Furthermore, after 30 business days of the disconnection from the grid and the default is not cured, the Market Operator will terminate AEDC’s Market participation agreement,” the power company noted.
