TCN says why it disconnected feeders in Kaduna and Kano DisCos

Key highlights

• TCN says the Disconnection Order was carried out on the 26th of April, 2023 in line with the Market Rules.
• Kano and Kaduna Distribution Companies were found to be in non-compliance with the Market Rules for not having adequate Bank Guarantees and for incomplete payments of their Market Operator’s invoices.
• They urge that Market Rules provide clear and concise procedures for enforcing compliance with its provisions.

The Transmission Company of Nigeria disclosed that it disconnected major feeders to the Kano and Kaduna distribution companies within the APLE Franchise area until they provide the required Bank guarantees to settle outstanding invoices with the Market Operator.

TCN disclosed this in a statement on Friday titled, “Chronological Antecedent that led to the Disconnection of Aple Electric Limited (APLE) and Major Feeders in Kano and Kaduna Distribution Companies”

They said the Market Operator suspended APLE Electric Limited, Kano and Kaduna DisCos for breach of Market Rules, which govern and sanitise the Nigerian Electricity Supply Industry.

Market Operator

They said due diligence was observed by the Market Operator before issuing the disconnection order which is in accordance with procedures of the rules guiding the market, they said:

• “This is to ensure the preservation of the Market and that non-compliant Participants are held accountable for their actions”.

TCN said, Aple Limited was found to be in non-compliance with the Market Rules for not having adequate Bank Guarantee and for incomplete payments of its Market Operator invoices for September 2022 to February 2023, they added:

• “As per the Market Rules, the Market Operator first sent a request for a Bank Guarantee to Aple on the 29th of November, 2022.
• “However, the company failed to provide the required Bank Guarantee.
• “Following the Notice of Event of Default, based on the Market Rules, APLE requested a hearing which was held online on the 20th of December, 2022.
• “After the hearing, a 13-business day notice was issued on the 21st of March,2023 in three national daily newspapers ( Daily Trust, Guardian and Thisday). Thereafter, a suspension order was issued on the 19th of April, 2023 which required APLE to cure its defaults.

Kano and Kaduna DisCos

TCN said both DisCos were equally found to be in non-compliance with the Market Rules for not having adequate Bank Guarantees and for incomplete payments of their Market Operator’s invoices for the timeline from January 2020 to February 2023.

• “Both companies were sent a request for their bank Guarantees in line with the Market Rules, on the 16th of February 2022 and their failure to provide the required Bank Guarantees,
• ” Consequently, a Notice of Event of Default was issued on the 2nd of March, 2022, for incomplete payment of invoices
• ” A 14 business day notice was issued on the 221st of March, 2023, in three national newspapers ( Daily Trust, Guardian and Thisday) as required by Market Rules
• ” The Disconnection Order was then carried out on the 26th of April, 2023 in line with the Market Rules”

TCN added that the order resulted in the disconnection of the major Feeders within the franchise areas of KAEDCO AND KEDCO.

They warned it would be reversed until such a time that they provide the required bank guarantees and settle their outstanding invoices with the Market operator.

They added that Market Rules provide clear and concise procedures for enforcing compliance with its provisions.