Power outage threatens Abuja and three states as TCN suspends AEDC

The Transmission Company of Nigeria has issued a suspension order against the Abuja Electricity Distribution Company for failure to comply with the terms of the market rules and the market participation agreement.

AEDC supplies electricity to the National Capital Territory, Kogi, Nasarawa and Niger states, while TCN, as a state-owned company, distributes electricity generated by the power generation companies to the power distribution companies across the country.

In the suspension order number TCN/ISO/MO/2024/002, the transmission company stated that the Abuja-based distribution company had failed to provide sufficient bank guarantees to TCN and that this development was contrary to electricity market rules.

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

“The MO had previously notified AEDC in writing of its breach of the market rules through: 1. Request to comply with regulatory requirements dated 13 February 2024, 2. Notice of Breach: Failure to comply with regulatory requirements dated 22 March 2024 and 3. Notice of Intention to Issue a Suspension Order: Failure to Provide an Adequate Bank Guarantee dated 8 April 2024.

“The MO in these notices required that corrective measures be taken within a specified period to address the deficiency. Despite all notifications, AEDC failed to address this deficiency. Due to this non-compliance, AEDC is hereby suspended from the MO-managed electricity market. No new contracts or agreements shall 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 petroleum), finance, agriculture, environment, humanitarian services, construction and housing, trade and investment, capital markets, aviation and transport, ICT and others.

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