TCN suspends AEDC for non-compliance with market rules – Worldstage

WorldStage Newsonline – The Abuja Electricity Distribution Company (AEDC) has been suspended by the Market Operator (MO) of the Transmission Company of Nigeria (TCN) for non-compliance with the provisions of the market rules.

Mr Ali Ahmad, market operator at TCN, said in Abuja on Friday that the suspension notice was served on AEDC after AEDC had previously been informed in writing of the non-compliance with market rules.

Ahmad said the AEDC also failed to provide the MO with sufficient bank guarantee as required by section 15.3.3 of the Market Rules.

He said that several notices had been served on the AEDC, including a Notice of Compliance with Supervisory Requirements dated February 13 and a Notice of Default: Failure to Comply with Supervisory Requirements dated March 22, but that none of these notices had been complied with.

According to him, on April 8, the AEDC was served with a notice of intention to issue a suspension order: Insufficient bank guarantee.

“The approach in these communications required that corrective measures be taken within a specified time period to remedy the deficiency.

“Despite all notifications, AEDC has failed to correct the deficiency. Due to this non-compliance, AEDC is hereby suspended from the MO managed electricity market,” he said.

Ahmad said that no new contract or agreement will be entered into with AEDC during the suspension period.

He said that in order to rectify the situation, AEDC must provide sufficient bank guarantee within five working days from the date of this notification.

He said that under Section 45 of the Market Rules, the AEDC’s network could be partially or fully disconnected if the deficiency is not remedied within five working days.

“In addition, the Market Operator will terminate the Market Participation Agreement with AEDC if the deficiency is not remedied within 30 working days after disconnection from the grid.