On Sunday, the Kano Electricity Distribution Company (KEDCO) became the latest electricity distributor to be hit by the electricity market operator’s regulatory sanctions gale.
In paid media advertisement, the Nigerian Transmission Company (TCN) announced that KEDCO had been suspended from the market and that a portion of its transmission equipment had been 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 Kano State’s leading distributor of electricity.
The TCN is a government agency charged with transmitting accessible electricity to the country’s distribution firms.
KEDCO’s disconnection is anticipated to result in blackouts in Kano State areas.
According to the publicity released in TCN’s official twitter handle, @TCN Nigeria, KEDCO was suspended on Sunday for failure to comply with and remedy the Electricity Operator Market Conditions / Market Participation Agreements.
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.@TCN_NIGERIA @kedcoplc @FMPWH pic.twitter.com/ALtlWRpx3E
— onem Nigeria (@onemNigeria) July 21, 2019
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 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 Dar-Agunci.
