OpeOluwani Akintayo
Lagos — The Transmission Company of Nigeria, TCN, has suspended Kano Electricity Distribution Company, KEDCO from the electricity market.
In a paid advertorial on Sunday, TCN said the distribution company’s license was put on hold and a section of its transmission facilities disconnected from the national grid until further notice for “default in market agreements”. It gave no further explanation.
KEDCO is the main electricity distribution company in Kano State.
“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.
Following the noticed default, the TCN said 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.
The notice was pursuant to Section 45.3.8 to request a hearing before the Market Operator to show cause why KEDCO should not be suspended from the market or disconnected from the national grid.
The KEDCO management was said to have responded to the suspension notice within five days, or two business days stipulated by the market rules.
The Kano company requested a hearing before the Market Operator to show cause why the suspension order, the disconnection order, or both, should not be issued.
Consequently, the TCN said a three-member panel of Market Operators Institution staff and the Market Operator Enforcement Panel was constituted to hear KEDO’s case on July 19.
However, KEDCO not only failed to appear before the panel, it also did not give any reason in writing for not doing so, thereby violating Rule 45.3.9 of the Market Operator Regulations, but the TCN also stated.
As a result, the Market Operator directed the transmission service providers to disconnect KEDCO’s interface facilities from the national grid until the default was remedied.
The affected facilities include the 33kV feeder transmission lines at Club and Zaria Imari areas that connect the Transmission Station at Dar-Agunci.
The KEDCO is not the only distribution firm to have suffered such fate.
Others such as the Enugu and Ikeja DISCOs were also in the last three weeks, suspended over similar allegations of the infraction.
