Isaac Anumihe, Abuja
There are strong indications that electricity consumers in the five eastern states will be thrown into darkness following the suspension of Enugu Electricity Distribution Company (EEDC) by the Transmission Company of Nigeria (TCN) from Market Operator-Administered Markets.
EEDC covers Enugu, Anambra, Imo, Ebonyi and Abia states. In the Order number: TCN/ISO/MO/2019/002 to EEDC, TCN said that it was suspending the electricity company based on Markets Rules 45.3.9, 45.3.12 and 45.3.13.
According to the order, the suspension subsists until the Event of Default stated in NIISO/2019/002 is remedied. TCN accused EEDC of failing to maintain a security cover with the Independent System Operator, thereby breaching Section 15.3.2 of the Market Rules, and Section 45.3.1(d) of the Market Rules. The Independent System Operator, had on behalf of the Market Operator, entered into a Market Participation Agreement with Enugu Electricity Distribution PLC (EEDC) on February 23, 2015.
In the signed Market Participation Agreement, EEDC agreed to, at all times, be compliant with the provisions of Clause 3.2. which states 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. The participant shall also provide 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.
However, EEDC, TCN said, 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. 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 which states that: Where an event of default has occurred in relation to a participant, the Market Operator shall: (a)issue to the participant a default notice specifying the alleged default.