TCN restricts electricity supply to Enugu disco over failure to comply with operations rules

TCN restricts electricity supply to Enugu disco over failure to comply with operations rules

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The Enugu  Electricity Distribution Company has been suspended from Market Operator Administered Markets because of non compliance of the company with some of the agreement it entered with the market operator.

Consequently, the company has been restricted from intakes from the national grid through a disconnection order to the Transmission Service Provider to disconnect some facilities of Enugu Electricity Distribution Company until the event of default stated in NIISO/2019/002 is remedied.

According an advertisement placed in some dailies by the Transmission  Company of Nigeria (TCN) and signed  E.A. EJE, Market Operator, it  stated that the Independent System Operator, on behalf of the Market Operator, entered into a Market Participation Agreement with Enugu Electricity Distribution PLC (EEDC)on the 23rdofFebruary, 2015.

In the signed Market Participation Agreement, EEDC agreed to at all times be compliant with the provisions of Clause 3.2  which is  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.

It should also make 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.

The electricity distribution company according to TCN failed to maintain a security covering in respect of Section 15.3.2 of the Market Rules, thereby breaching Section 45.3.1(d) of the Market Rules which says the rule shall apply to any Participant  that  fails to renew the Security Cover required from each Participant under these Rules within the time specified in that regard by the Market Operator;

It stated that when Enugu Electricity Distribution Company was notified about it failure to comply with rules through a default notice and was expected to remedied the situation within a specific time line but it failed to respond.

The default notice relates to payment of amounts due to the Market Operator under these Rules, including Rules 45.3.1(b) to 45.3.1(d), 45.3.1(h) and 45.3.1(i) to 45.3.1(n), as follows:  (a) by paying all monies due for payment by it under these Rules and the Grid Code, together with any Default Interest calculated in accordance with Rule 38.11 and any costs and expenses determined by the Market Operator to have been incurred by it by reason of the default; and

(b) by providing additional Security Cover which complies with the requirements of Rule 15.3.3.


Olusola Bello

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