TCN disconnects EEDC from national grid

By Ukpono Ukpong, Abuja

The Transmission Company of Nigeria (TCN) has disconnected the Enugu Electricity Distribution Company (EEDC) from the national grid due to its failure to comply with the market rules and market participation agreements entered into with the independent system operator.

Following the disconnection order, the EEDC intake of power from the national grid has been restricted through a disconnection order sent to the transmission service provider to disconnect some facilities of Enugu Electricity Distribution Company until the event of default is remedied.

This was contained in a suspension order signed by the TCN, E.A. Eje.

Eje explained that EEDC in the signed market participation agreement had agreed to at all times be compliant with the provisions of Clause 3.2 which says that “the participant shall in accordance with the provisions of the market rules, grid code, metering code and the market procedures be compliant at all times, particularly by providing metering information in a timely manner and in the approved format in accordance with the metering code and the market procedures.

“Security deposit when so required of an amount established by market operator to serve as a form of guarantee of payment for all amounts due from the participant to the market operator and settling in a timely manner any payment due.”

He also noted that the EEDC failed to maintain a security cover in respect of Section 15.3.2 of the Market Rules, thereby breaching Section 45.3.1(d) of the Market Rules.

While noting that the EEDC was notified of the default of Market Rules 45.3.1 via a notice of event of default dated May 24, Eje explained that EEDC had the opportunity to remedy the default in line with Section 45.3.3 (b) of the Market Rules by “by providing additional security cover which complies with the requirements of Rule 15.3.3.”

He also said that the suspension order is in line with the Market Rules 45.3.7, which stipulates “suspension order to the participant, suspending or restricting all or any of the participant’s rights to participate in the market operator administered market.”

According to the TCN, it had given the EEDC ample time of five days or two business days requesting a hearing to show cause why the suspension order and the disconnection order or both as the case may be should not be issued.

“The market operator constituted a three -member panel to adjudicate at the hearing requested by the EEDC. The hearing was conducted on June 13, where both market operator compliance officers and the EEDC argued for and against the suspension of EEDC for being in default of Market Rules 45.3.1 (d) and not remedying it within the stipulated time.

“The panel reviewed the submissions of both market operator compliance officers and the EEDC and thereafter, recommended the suspension of the EEDC from market operator administered markets,” the statement added.