Yemisi Izuora
The Ikeja Electric, IE, has requested for extension of time to enable it meet its Security Cover obligation to the Market Operator, MO.
The Disco, which is reacting to the publication issued by the MO suspending it from the electricity market, however explained that it actually provided a security cover to the MO as stated in the said publication.
The Disco said it received a letter from the MO dated 13th June 2019 on Friday, 21st June 2019 advising the company to increase the value of the Security Cover within 2 business days.
However, in view of the very short notice period, Ikeja Electric submitted a duly acknowledged letter to the MO on Tuesday, 25th of June 2019 seeking for extension of time to submit the Bank Guarantee to provide sufficient time for it Bankers to process the requests through the bank’s credit committees and other relevant approvals procedures, the company explained.
“We are therefore at a loss at the MO’s order, signed on 26th June 2019 and published today.
Notwithstanding the above, IE assures all its customers and other stakeholders that everything will be done to ensure that there is no deliberate disruption to services.
We will continue to engage the Market Operator – who plays a critical role in stabilising the Market and the Sector – to resolve the issues raised in the publication.”, IE said in a statement.
Oriental News Nigeria, recalls that the Independent System Operator, on behalf of the Market Operator, entered into a Market Participation Agreement with Ikeja Electricity Distribution PLC (IKEDC) on the 5th of March, 2015.
In the signed Market Participation Agreement, IKEDC agreed to at all times be compliant with the provisions of Clause 3.2 which demands that the 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 and settling in a timely manner any payment due.
The MO however, said the Disco 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.