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”
READ ALSO: KEDCO apologizes over power shortage in Kano, Katsina, Jigawa states
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.
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.
KEDCO reacts
Meanwhile in its response, Kano Electricity Distribution Company (KEDCO) through its Head of Communications, Sani Bala Sani says the disconnection was not only issued to them.
He said; “KEDCO is among other DisCos served with a disconnection order where 3 of our feeders were disconnected namely: CBN, Flour Mills and Club by Market Operator due to non-compliance with the provision of market rules.
“However, we are currently working with Transmission Company of Nigeria (TCN) and other relevant stakeholders to resolve the problem soonest. While we apologize for the inconvenience, we assure you of our continuous commitment to providing a reliable power supply.” He added.
Kano Residents worried
Residents of Kano State have since continued to express their worries over non availability of power supply which had begun since the commencement of Ramadan.
Many took to their social media handles to narrate their ordeal.
KEDCO had apologized to them in a statement that reads in part below;
The Management of Kano Electricity Distribution Plc. (KEDCO) hereby apologize to its esteemed customers across its entire franchise states of Kano, Katsina and Jigawa for recent shortage in electricity supply. This is largely due to low allocation of megawatts to KEDCO, for distribution.
Against an average of 280MW load allocation KEDCO now receives an average of 140MW, a shortfall of 140MW, which is grossly inadequate to go round all our customers sufficiently.
KEDCO is only responsible for distributing what is allocated to us by the National Control Centre (NCC) which has been constantly reviewed downwards and this has been responsible for the shortage of power supply to our customers.
We assure our valued customers that we are engaging all necessary stakeholders to find a lasting solution that will facilitate improved electricity supply to our customers.
Therefore, we are optimistic and confident that supply situation will improve as soon as possible.
Furthermore, we wish to reiterate that we remain committed to distributing adequate electricity safely and reliably for our customers’ satisfaction and sustainable business growth; but that is being hindered occasionally by unforeseen generation and transmission challenges which are beyond our immediate control.
In view of this, we appeal to our customers to remain patient while we engage and resolve the bottlenecks with the relevant stakeholders in the electricity value chain.
