Citing non-compliance with market rules, the Transmission Company of Nigeria (TCN) on Friday issued a notice of disconnection from the national grid  to Abuja Electricity Distribution Company (AEDC).

The Group Chairman of United Bank for Africa (UBA) Plc and founder of Tony Elumelu Foundation, Mr. Tony Elumelu is the Group Chairman of the Transnational Corporation (Transcorp Plc), the company that owns a 60 percent interest in AEDC, one of Nigeria’s 11 electricity distribution companies (DisCos).

In a statement on Friday, TCN said the AEDC has also failed to provide the Market Operator (MO) with an adequate bank guarantee in line with Section 15.3.3 of the MO.

According to the TCN,  the DisCo had been notified of these defaults and has been given five business days (starting today, Friday) to restitute or be disconnected from the national grid. It specifically stated that the disconnection date is slated for July 28 at midnight.

The statement read: “The MO had previously notified AEDC in writing of its default of the market rules via; Request for Fulfillment of Prudential Requirement dated 13/Feb/2024,” the Market Operator, Ali Bukar Ahmad, said.

“Notice of Event of Default: Non-Fulfillment of Prudential Requirement dated 22/Mar/2024 and, Notice of Intent to Issue a Suspension Order: Non-Provisions of Adequate Bank Guarantee dated 8/Apr/2024.

“The MO in these notices requested that corrective actions be taken within a specified period to cure the default.

“In spite of all notifications, AEDC failed to cure this Default. In view of this non-compliance, AEDC is hereby suspended from the MO Administered Electricity Market.

“No new contract or agreement shall be entered into with AEDC within the suspension period.

“To remedy this situation, AEDC must provide an adequate Bank Guarantee within five (5) business days (BD) from the date of this notice.

“If, after the 5 BD this default is not cured, AEDC’s network may be partially or totally disconnected from the grid in line with section 45 of the market rules.”

Only recently, the Minister of Power, Adebayo Adelabu, summoned the Chief Executives of Abuja Electricity Distribution Company (AEDC) and Ibadan Electricity Distribution Company (IBEDC), over the deteriorating electricity supply in their coverage areas.

“Wilful non- performance by any DisCo could suffice as a reason for severe punishment or outright license revocation,” Adelabu warned.

The AEDC and IBEDC had been rated among the non-performing power companies in Nigeria by the electricity sector regulator, the Nigeria Electricity Regulatory Commission.