Electricity: Blackout looms as TCN moves to disconnect Abuja DisCo from grid over alleged infractions

*The Transmission Company of Nigeria threatens to disconnect the Abuja Electricity Distribution Company from grid, over purported failure to provide the Market Operator (MO) with an adequate bank guarantee in line with ‘the conditions of Market Rules and Market Participation Agreements’

Isola Moses | ConsumerConnect

For the electricity provider’s purported failure to act on notices requested that corrective actions be taken within a specified period to address certain market rules, the Transmission Company of Nigeria (TCN) Friday, July 19, 2024, issued a suspension notice to Abuja Electricity Distribution Company (AEDC).

The TCN, in a statement titled, “In the matter of non-compliance with the conditions of Market Rules and Market Participation Agreements: Disconnection and Suspension Order”, said the AEDC had also failed to provide the Market Operator (MO) with an adequate bank guarantee in line with Section 15.3.3 of the MO.

The company also disclosed the DisCo had been notified of these defaults, and issued five business days, starting Friday, to restitute or be disconnected from the national grid.

It also stated the disconnection date is slated for July 28 at midnight.

Ali Bukar Ahmad, Market Operator at TCN, in the statement, said: “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.

“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 also stated: “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.”

The company also explained: “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.”