The Abuja Electricity Distribution Company has been suspended by the Transmission Company of Nigeria for violating the terms of the market participation agreement and market rules.
AEDC supplies electricity to the Federal Capital Territory, Kogi, Nasarawa and Niger states, while TCN is the Federal Government company that transmits the electricity produced by power generation companies to power distribution companies across the country.
The transmission company said in the suspension order, which had the number TCN/ISO/MO/2024/002, that TCN was not given a sufficient bank guarantee by the Abuja distribution company, which was against the regulations governing the power market.
“This is a formal suspension notice to Abuja Electricity Distribution Company due to noncompliance with provisions of the market rules and failure to provide the Market Operator with an adequate bank guarantee in line with section 15.3.3 of the Market Rules.
“The MO had previously notified AEDC in writing of its default of the Market Rules via; 1. Request for Fulfillment of Prudential Requirement dated February 13, 2024. 2. Notice of Event of Default: Non-Fulfillment of Prudential Requirement dated March 22, 2024 and, 3. Notice of Intent to Issue a Suspension Order: Non-Provisions of Adequate Bank Guarantee dated April 8, 2024.
“The MO in these notices requested that corrective actions be taken within a specified period to cure the default. Despite 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,” TCN stated.
