Power Crisis Looms In Abuja As TCN Targets AEDC For Non-Compliance

Power Crisis Looms In Abuja As TCN Targets AEDC For Non-Compliance

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 failure to provide the Market Operator (MO) with a sufficient Bank Guarantee as stipulated in Section 15.3.3 of the MO’s guidelines.

In a press release issued on Friday, TCN announced that AEDC’s disconnection from the national grid is scheduled for July 28. This disconnection will affect 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 statement, signed by Ali Bukar Ahmad, emphasized that TCN had previously communicated its concerns about AEDC’s non-compliance through several written notices. These included a “request for the fulfillment of Prudential Requirement” dated February 13, 2024, a “Notice of Event of Default: Non-fulfillment of Prudential Requirement” dated March 22, 2024, and a “Notice of Intent to Issue a Suspension Order: Non-provision of Adequate Bank Guarantee” dated April 8, 2024.

TCN highlighted that these notices requested AEDC to take corrective actions within a specified period to avoid default. Despite these notifications, AEDC failed to address the issues. Consequently, TCN has suspended AEDC from the MO Administered Electricity Market, stating that no new contracts or agreements shall be entered into with AEDC during the suspension period.

To rectify the situation, AEDC is required to provide a sufficient bank guarantee within five business days following the issuance of the notice. TCN warned that if this default is not addressed within five days, AEDC’s network may be partially or totally disconnected from the grid in accordance with Section 45 of the Market Rules. Furthermore, if the default is not resolved within 30 business days of the disconnection, the Market Operator will terminate AEDC’s Market participation agreement.

This action underscores TCN’s commitment to enforcing market regulations and ensuring compliance within Nigeria’s electricity market.