The Transmission Company of Nigeria (TCN) has explained why it suspended Aba Power Electric Limited, Electricity Distribution Company from the National Grid. Mrs Ndidi Mbah, TCN’s General Manager, Public Affairs, in a statement on Friday revealed reasons for suspension of the electricity distribution company. 

Dailyledger.com.ng reports that there has been a total blackout in Aba, the commercial city of Abia State for about two weeks since TCN disconnected Aba Power Electric from the National Grid. Following the disconnection, Aba Landlords Protection and Development Association (ALPADA) yesterday, issued the Transmission Company of Nigeria (TCN) a 24 hour ultimatum to restore electricity in Aba. 

Speaking on the reason for disconnection, Mrs Ndidi Mbah, TCN’s General Manager, Public Affairs said the APLE was suspended by the Market Operator (MO) for breach of market rules which governs and sanitises the Nigerian electricity supply industry. According to her, the Market Operator is mindful of the need to ensure the continued sustenance of the Nigerian Electricity Supply Industry (NESI), which requires strict adherence to market rules and the application of sanctions where necessary. She said that due diligence was observed by the MO before issuing the suspension/disconnection order, which is in accordance with procedures of the rules guiding the market.

 ”This is to ensure the preservation of the market and that non-compliant participants are held accountable for their actions.

 ”The APLE Electric Limited was found to be in non-compliance with the Market Rules for not having adequate Bank Guaranty and for incomplete payments of APL’s MO’s invoices from September 2022 to February 2023. ”As per the market rules, the MO first sent a request for a bank guarantee to APLE on the Nov. 29, 2022,” she said.

 Mbah said that the company failed to provide the required bank guarantee, consequently, a Notice of Event of Default was issued to APLE on Dec 7, 2022, for incomplete payment of issued invoices. 

“Following the notice of event of default, a Notice of Intent to Issue a suspension order was issued on Dec. 14, 2022, based on the Market Rules.

 ”APLE requested for a hearing which was held online on Dec. 20, 2022, where APLE was given an opportunity to show just cause why it should not be issued a Suspended/Disconnected Order.

 ”After the hearing, a 14-business day notice was issued on the March 21 in three (3) national daily newspapers (Daily Trust, Guardian & Thisday) as required by the Market Rules. Thereafter, a suspension order was issued on April 19, which required APLE to cure its defaults,” she said. 

Mbah said that the disconnection order was carried out on April 20 in line with the market rules. She said that this order resulted in the disconnection of the Feeders within the APLE franchise area until such a time that they provide the required bank guarantee and settle their outstanding invoices with the MO.



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