The Kano Electricity Distribution Company(KEDCO) has been suspended from the electricity market by the Transmission Company of Nigeria (TCN) over ‘default in the market conditions/market participation”.
The Transmission Company of Nigeria (TCN) announced in paid media advertorials 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 serving Kano, Katsina and Jigawa states.
The TCN is a government agency responsible for transmitting available electricity to distribution companies in the country.
The disconnection of the KEDCO is expected to lead to blackout in parts of states under its coverage.
According to the advertorials published in the TCN official twitter handle, @TCN_Nigeria, on Sunday, KEDCO was suspended for a default in observing the Electricity Operator Administered Market Conditions/Market Participation Agreements and its failure to remedy them.
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, according to Premium Times.
The Kano company requested for 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, the TCN 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 Dan-Agundi.