- TCN stated that AEDC had not provided an adequate bank guarantee, a requirement under the power market rules
The Transmission Company of Nigeria (TCN) has issued a suspension order to the Abuja Electricity Distribution Company (AEDC) for failing to comply with the conditions of the market rules and market participation agreement.
AEDC is responsible for supplying electricity to the Federal Capital Territory, Kogi, Nasarawa, and Niger states. TCN, a Federal Government entity, transmits electricity generated by power companies to distribution companies across Nigeria.
In the suspension order, numbered TCN/ISO/MO/2024/002, TCN stated that AEDC had not provided an adequate bank guarantee, a requirement under the power market rules.
“This is a formal suspension notice to Abuja Electricity Distribution Company due to non-compliance 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 statement read.
The Market Operator (MO) had previously notified AEDC of its default in writing. The notices included:
Request for Fulfillment of Prudential Requirement dated February 13, 2024.
Notice of Event of Default: Non-Fulfillment of Prudential Requirement dated March 22, 2024.
Notice of Intent to Issue a Suspension Order: Non-Provision of Adequate Bank Guarantee dated April 8, 2024.
Despite these notifications, AEDC failed to rectify the issue. Consequently, TCN announced the suspension of AEDC from the MO-administered electricity market, prohibiting new contracts or agreements with AEDC during the suspension period.
Discussion about this post