The Transmission Company of Nigeria (TCN) on Friday issued a suspension notice to Abuja Electricity Distribution Company (AEDC) over alleged non-compliance with market rules.
The company in a statement said the AEDC has also failed to provide the Market Operator (MO) with an adequate bank guarantee in line with Section 15.3.3 of the MO.
It stated that the DisCo had been notified of these defaults and has been given five business days (starting today) to restitute or be disconnected from the national grid.
According to the statement, the disconnection date is slated for July 28 at midnight.
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“The MO had previously notified AEDC in writing of its default of the market rules via; Request for Fulfillment of Prudential Requirement dated 13/Feb/2024,” the Market Operator, Ali Bukar Ahmad, said.
“Notice of Event of Default: Non-Fulfillment of Prudential Requirement dated 22/Mar/2024 and, Notice of Intent to Issue a Suspension Order: Non-Provisions of Adequate Bank Guarantee dated 8/Apr/2024.
“The MO in these notices requested that corrective actions be taken within a specified period to cure 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.
“To remedy this situation, AEDC must provide an adequate Bank Guarantee within five (5) business days (BD) from the date of this notice.
“If, after the 5 BD 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.”
AEDC – In the matter of non-compliance with the conditions of Market Rules and Market Participation Agreements: Disconnection and Suspension Order #tcnnigeria pic.twitter.com/5xEHlUUsAF
— TCNNIGERIA (@TCN_NIGERIA) July 19, 2024
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