The Federal Government on Tuesday announced the suspension of Enugu Electricity Distribution Company (EEDC) over infractions on Market Participation Agreement.
The suspension was contained in the Transmission Company of Nigeria (TCN) Market Operator Order No: TCN/ISO/MO/2019/002, dated June 24, 2019, which was signed by Engr. E.A. EJE, of the Market Operator.
In the Order, which was made available to newsmen in Abuja, the TCN stated that the EEDC 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.
“Based on Markets Rules 45.3.9, 45.3.12 and 45.3.13, the Market Operator hereby orders as follows:
“That Enugu Electricity Distribution Company is hereby suspended from Market Operator Administered Markets.
The restriction of Enugu Electricity Distribution Company intake from the grid through a Disconnection Order to the Transmission Service Provider to disconnect some facilities of Enugu Electricity Distribution Company until the Event of Default stated in NIISO/2019/002 is remedied,” it stated.
Giving insights into what led to the suspension, it was explained that the Independent System Operator, on behalf of the Market Operator, entered into a Market Participation Agreement with Enugu Electricity Distribution Plc (EEDC) on the 23rd of February, 2015.
In the signed Market Participation Agreement, EEDC was said to have agreed to at all times be compliant with the provisions of Clause 3.2 which states that 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.
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.
Settling in a timely manner any payment due
“EEDC 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 which is reproduced below:
45.3.1 This Rule 45.3 shall apply to any Participant in respect of which any of the following Events of Default have occurred if:
“(d) the Participant fails to renew the Security Cover required from each Participant under these Rules within the time specified in that regard by the Market Operator” it added.