The Abuja Electricity Distribution Company (AEDC) has been suspended by the Market Operator (MO) of  the Transmission Company of Nigeria (TCN), for not complying with provisions of the market rules.

Mr Ali Ahmad, Market Operator, TCN, said in Abuja on Friday that the notice of the suspension was communicated to AEDC after  previously notifying AEDC it in writing of its default of the market rules.

Ahmad said that AEDC also failed to provide the MO with an adequate Bank Guarantee in line with section 15.3.3 of the market rules.

He said that AEDC was served several notices, including request for Fulfillment of Prudential Requirement on Feb 13, and Notice of Event of Default: Non-Fulfillment of Prudential Requirement on March 22 but that none was honoured.

According to him, Notice of Intent to Issue a Suspension Order: Non-Provisions of Adequate Bank Guarantee was, thereafter, given to AEDC on April 8.

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

READ ALSO:CBN implements stricter regulations for dormant accounts, unclaimed funds

READ ALSO: Insecurity: Fear grips Ondo communities over incessant abductions

“In spite of all notifications, AEDC failed to address the default. In view of this non-compliance, AEDC is hereby suspended from the MO administered electricity market,” he said.

Ahmad said that no new contract or agreement shall be entered into with AEDC within the suspension period.

He said that to remedy the situation, AEDC must provide an adequate Bank Guarantee within five  business days from the date of this notice.

He said that AEDC’s network may be partially or totally disconnected from the grid if the default was not addressed after five business days, in line with section 45 of the market rules.

“Furthermore, after 30 business days of the disconnection from the grid and the default is not addressed, the Market Operator will terminate AEDC’s Market Participation Agreement.