Abuja Electricity Supply At Risk As TCN Alleges Market Rule Infringement

Abuja Electricity Supply At Risk As TCN Alleges Market Rule Infringement

The Transmission Company of Nigeria (TCN) announced in a press release on Friday that it plans to disconnect Abuja Electricity Distribution Company (AEDC) from the national grid on July 28th. This action 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……. CONTINUE READING 

According to the press release signed by Ali Bukar Ahmad, TCN has previously communicated its concerns about AEDC’s non-compliance with market rules through several written notices. These notices include a request for fulfilling the Prudential Requirement dated February 13, 2024, a Notice of Event of Default for Non-fulfillment of Prudential Requirement dated March 22, 2024, and a Notice of Intent to Issue a Suspension Order for Non-provision of Adequate Bank Guarantee dated April 8, 2024.

Despite these notifications, AEDC has not taken corrective actions within the specified period to rectify the default. As a result, TCN has suspended AEDC from the MO Administered Electricity Market, prohibiting any new contracts or agreements with them during this suspension period.

To resolve the situation, TCN has mandated AEDC to provide a sufficient bank guarantee within five business days from the notice’s issuance. Failure to do so may lead to partial or total disconnection of AEDC’s network from the grid in accordance with Section 45 of the Market Rules. If the default is not corrected within 30 business days after disconnection, the Market Operator will terminate AEDC’s Market participation agreement.

TCN emphasized that these actions are necessary to enforce compliance with market regulations and ensure the integrity of the electricity supply system in Abuja.