The Transmission Company of Nigeria (TCN) has issued a suspension notice to Abuja Electricity Distribution Company (AEDC) over alleged non-compliance with provisions of the market rules and failure to provide the Market Operator (MO) with an adequate Bank Guarantee in line with Section 15.3.3 of the MO.
It said the disconnection from national grid would occur on July 28 at the 33Kv Feeder from 132/33Kv Katampe 1 Transmission Station and 33Kv Feeder 3 from 132/33Kv Central Area Transmission Station.
In an advert placement on national dailies, signed by Ali Bukar Ahmad, the TCN said it had previously notified AEDC in writing of its default of the Market Rules via “request for fulfilment of Prudential Requirement dated 13/Feb/2024. Notice of Event of Default: Non-fulfilment 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.”
It stated that the notices requested that corrective actions be taken within 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.”
It stated that to rectify the situation, AEDC must provide an adequate bank guarantee within five business days from the date of the notice.
“If after the 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.”
Source:- Dailytrustng
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