National Grid: TCN Disconnects Enugu Disco Over Non-compliance
The Transmission Company of Nigeria on Tuesday announced the disconnection of Enugu Electricity Distribution Company from Nigeria’s power grid as a result of the Disco’s noncompliance with the conditions of market rules and market participation agreements.
It disclosed this in Order No: TCN/ISO/MO/2019/002, before the Market Operator, Independent System Operator and Transmission Company of Nigeria, adding that the ISO, on behalf of the MO, had entered into a Market Participation Agreement with the Disco on February 23, 2015.
The Market Operator and Independent System Operator are both arms of the TCN but perform separate functions in the transmission of electricity in Nigeria.
TCN stated that in the market participation agreement, EEDC agreed to at all times be compliant with stipulated provisions that were signed by both parties, but the distribution company defaulted in the aspect of maintaining security cover as captured in the electricity market rules.
“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,” the transmission company stated.
It added, “EEDC was notified of the default of Market Rules 45.3.1 (d) via a Notice of Event of Default (NED/2019/002) dated May 24, 2019. It was required to remedy the default in line with Section 45.3.3 of the Market Rules.”
TCN stated that it followed the rules laid down in the market in its communication with the Disco before reaching the conclusion to suspend the utility company, and to disconnect it from the country’s power grid until EEDC remedies its default in the agreement it reached with TCN.
In the disconnection order, TCN stated, “That Enugu Electricity Distribution Company is hereby suspended from Market Operator administered markets.
“The restriction of Enugu Electricity Distribution Company intake from the 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.”
