Chibisi Ohakah, Abuja
The management of Transmission Company of Nigeria (TCN), has announced the suspension and disconnection orders to Kano Electricity Distribution Company (KEDCO) from the electricity market.
According to the suspension and disconnection order, which was posted on TCN’s twitter handle @TCN_Nigeria and with paid newspaper announcements on Sunday, the suspension order is a result of KEDCO’s default in the market conditions/market participation agreements.
TCN did not, however, give much detail, but said the default was not remedied. It went on to say that the Kaduna Electricity Distribution Company failed to increase its security cover in accordance with the market rules.
The Transmission Company of Nigeria [TCN] said the intake of KEDCO from the grid had been restricted through a disconnection order to the Transmission Service Provider as some facilities would be disconnected.
According to the TCN, security cover when so required of an amount established by the market operator to serve as a form of guarantee of payment for all amounts due from the participant to the market operator
With the order the Kano Electricity Distribution Company (KEDCO) became the latest electricity distribution company to be affected by the gale of regulatory sanctions by the electricity market operator. The Lagos and Enugu discos felt the weight of the TCN in similar manner late in June before when the corrective measure was applied by the two discos.
In the paid media advertorials, TCN explained that KEDCO was suspended from the market and a section of its transmission facilities disconnected from the national grid until further notice. “The Nigerian Electricity Market Operator has today, 21st July issued Suspension and Disconnection Orders to Kano Electricity Distribution Company, KEDCO, from the Electricity Market for default in the Market Conditions/Market Participation Agreements,” the advertorials read.
KEDCO is the main electricity distribution company in Kano State. The TCN is a government agency responsible for transmitting available electricity to distribution companies in the country. Experts said the disconnection of the KEDCO is expected to lead to blackout in parts of Kano State.
Following the noticed default, the TCN recalled that the Market Operator issued “Notice of Default” No NED/2019/004 of July 9 to notify KEDCO of the default. The TCN said another notice of intent No. NIISO/2019/005 to suspend KEDCO from the market and restrict some of its rights was issued on July 15.