TCN threatens to disconnect AEDC from grid over ‘non-compliance’

The Transmission Company of Nigeria (TCN) has issued a suspension notice to Abuja Electricity Distribution Company (AEDC) over alleged non-compliance with market rules.

TCN, in a statement on Friday, said AEDC has also failed to provide the market operator (MO) with an adequate bank guarantee in line with Section 15.3.3 of the MO.

According to TCN, the DisCo had been notified of these defaults and has been given five business days (starting today) to restitute or be disconnected from the national grid.

The disconnection date is slated for July 28 at 12am.

“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,” TCN said.

“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 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. 

“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.”

Furthermore, TCN said after 30 business days of the disconnection from the grid and if the default is not cured, the MO will terminate AEDC’s market participation agreement.

The transmission company also said the disconnection will affect 33 kilovolt (Kv) feeders from 132/33Kv Katampe 1 transmission station and 33Kv feeder 3 from 132/33Kv central area transmission station – majorly Abuja region.

AEDC serves Niger, Kogi, Nasarawa and the FCT.