AEDC Suspended for Non-Compliance with Market Rules

The Abuja Electricity Distribution Company (AEDC) has been suspended by the Market Operator of the Transmission Company of Nigeria (TCN) for failing to comply with market rules.

Ali Ahmad, the Market Operator at TCN, announced the suspension in Abuja on Friday. He explained that AEDC had been previously notified in writing of its violations but failed to address them. Specifically, AEDC did not provide the required bank guarantee, as stipulated in Section 15.3.3 of the market rules.

Ahmad noted that AEDC received several notices, including a request for Fulfillment of Prudential Requirement on February 3 and a Notice of Event of Default on March 22. Despite these warnings, AEDC did not take corrective action. A notice of intent to suspend AEDC was issued on April 8.

“Despite repeated notifications requesting corrective measures, AEDC failed to comply,” Ahmad stated. “As a result, AEDC is now suspended from the Market Operator-administered electricity market.”

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During the suspension, AEDC cannot enter into new contracts or agreements. To lift the suspension, AEDC must provide an adequate bank guarantee within five business days. If the default remains unresolved, AEDC’s network may face partial or total disconnection from the grid, as per Section 45 of the market rules.

Ahmad added, “If AEDC does not address the default within 30 business days of disconnection, the Market Operator will terminate AEDC’s Market Participation Agreement.”

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