The Abuja Electricity Distribution Company has been suspended by the Market Operator of the Transmission Company of Nigeria for not complying with the provisions of the market rules.
The Market Operator of TCN, Ali Ahmad, disclosed in Abuja on Friday that the notice had been sent to the company.
He said the suspension was communicated to AEDC after previously notifying it in writing of its default of the market rules.
Ahmad said that AEDC also failed to provide the MO with an adequate Bank Guarantee in line with section 15.3.3 of the market rules.
He said AEDC was served several notices, including request for Fulfillment of Prudential Requirement on February 13, and Notice of Event of Default: Non-Fulfillment of Prudential Requirement, on March 22, but that none was honoured.
According to him, Notice of Intent to Issue a Suspension Order: Non-Provisions of Adequate Bank Guarantee was thereafter given to AEDC on April 8.
Ahmad said: “The MO in these notices requested that corrective actions be taken within a specified period to address the default.
“In spite of all notifications, AEDC failed to address the default.
“In view of this non-compliance, AEDC is hereby suspended from the MO administered electricity market.”
Ahmad said that no new contract or agreement shall be entered into with AEDC within the suspension period.
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He said that to remedy the situation, AEDC must provide an adequate Bank Guarantee within five business days from the date of this notice.
He said that AEDC’s network may be partially or totally disconnected from the grid if the default was not addressed after five business days, adding that this is in line with section 45 of the market rules.
Ahmad said: “Furthermore, after 30 business days of the disconnection from the grid and the default is not addressed, the Market Operator will terminate AEDC’s Market Participation Agreement.”