The Market Operator (MO), a section of the Transmission Company of Nigeria (TCN), yesterday said it has notified the Kano Electricity Distribution Company (KEDCO) on the intent to terminate its rights in the electricity market from September 10, 2019.
MO said the step followed KEDCO’s failure to raise its energy payment guarantee 30 days after it was suspended.
Daily Trust recently reported that after almost one month, KEDCO was still yet to meet its obligation. However in a reaction, KEDCO said it had the capacity to meet the obligation but didn’t because TCN owed it N3.2 billion since 2015. TCN has dismissed the claim.
In a publication of the notice to issue a termination order published in newspapers, the Head, Market Operator (MO), Engr. Edmund Eje, justified the termination plan, saying KEDCO has been under suspension by two separate orders since July 21, 2019.
Citing the relevant Market Rule being complied with in the power sector, Eje said that happens when the suspended participant fails to remedy the event of default which triggered the issuance of the suspension order to the satisfaction of the MO within 30 business days, or where the suspended participant had notified the market that it was not likely to remedy such event of default.
“KEDCO has still not topped up its security cover and has made media claims it is not going to top it up,” it said.
KEDCO has not paid in full its May 2019 invoice; it still owes N315.805 billion representing 50% of the invoice.
“In line with Market Rules 45.4.3.b KEDCO is required to make a written representation to the Market Operator on why the Termination Order should not be issued by September 10, 2019,” the MO explained.
Meanwhile, KEDCO in a statement on Wednesday said customers should brace up for improved power supply as TCN had restored the two feeders earlier disconnected.
“This is a big boost and KEDCO will leverage this to provide improved power supply in our franchise areas,” the spokesman, Sani Ibrahim Shawai said.
It thanked its customers for their patience and appealed to TCN to replace the 150MVA Kumbotso – Dan’agundi transformer, which stopped working five years ago.
The MD/CEO of KEDCO, Dr Jamilu Isyaku Gwamna said: “We are very ready to ensure that we render the necessary services to put smiles on the faces of our customers.”
