The Transmission Company of Nigeria has issued a suspension order to the Abuja Electricity Distribution Company over its non-compliance with the conditions of the market rules and market participation agreement.
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.
In the suspension order, with the number: TCN/ISO/MO/2024/002, the transmission firm said the Abuja distribution company failed to provide adequate bank guarantee to TCN, a development that contravened the power market rules.
“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. 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,” TCN stated.
Post Category: News
Attention! Read AfricanBaze Comment Policy!
- Exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed on AfricanBaze.
- Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
- Multiple Comments are STRICTLY FORBIDDEN. You MUST NEVER in multiples per post.
- Do NOT in anyway copy/duplicate or transmit another members comment and paste to earn.
- Your comments MUST NOT be less than 6 words.
- Constructive REPLY to comments is allowed once per comment, per post and subject to all rules as stated above.
NOTE: Failure to adhere to AfricanBaze Comment Policy will cost you ₦50.
