Blackout looms in Abuja and three states as TCN suspends AEDC

The Transmission Company of Nigeria has issued a suspension order to the Abuja Electricity Distribution Company for its failure to comply with the conditions of the market rules and the 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 electricity produced by power generation companies to power distribution companies across the country.

In the suspension order, numbered TCN/ISO/MO/2024/002, the transmission company said the Abuja-based distribution company failed to provide adequate bank guarantee to TCN, which was in contravention of electricity market rules.

“This is a formal suspension notice to Abuja Electricity Distribution Company due to non-compliance with the provisions of the Market Rules and failure to provide the Market Operator with an adequate bank guarantee in accordance with section 15.3.3 of the Market Rules.

“The MO had previously notified AEDC in writing of its failure to comply with the Market Rules by means of; 1. Request for Compliance with the Prudential Requirement dated February 13, 2024. 2. Notice of Default Event: Failure to Comply with the Prudential Requirement dated March 22, 2024 and, 3. Notice of Intent to Issue a Suspension Order: Failure to Comply with Adequate Bank Guarantee Provisions dated April 8, 2024.

“In these notices, the MO requested that corrective measures be taken within a specified period to remedy the non-compliance. Despite all notices, AEDC failed to remedy this non-compliance. In light of this non-compliance, AEDC is hereby suspended from the MO-administered electricity market. No new contract or agreement will be entered into with AEDC within the suspension period,” TCN stated.

Okechukwu Nnodim

Okechukwu, a journalist with Punch Newspapers, has 15 years of experience covering energy (power and oil), finance, agriculture, environment, humanitarian services, construction and housing, trade and investment, capital markets, aviation and transportation, ICT, among others.

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