Joseph Bakare
The Kano and Kaduna Electricity Distribution Companies, are making frantic efforts towards restoring power to areas affected by electricity severance by the Market Operator, MO, an arm of the Transmission Company of Nigeria, TCN.
Sani Baba, Head Corporate Communications, Kano DisCo, admitted that KEDCO was 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, he said the DisCo is currently working with Transmission Company of Nigeria (TCN) and other relevant stakeholders to resolve the problem soonest, just as he apologized for the inconvenience and assured of the firms continuous commitment to providing a reliable power supply.
Similarly, the Kaduna Electricity Distribution Company, said it is engaging with the after the disconnection.
According to Abdulazeez Abdullahi, Head, Corporate Communication, The Management of Kaduna Electric expresses great concern over the disconnection of some of our feeders from the power grid by the Market Operator.
The affected feeders are; 33KV Abakpa, 33KV Doka and 33KV Mogadishu. Therefore, communities and neighborhoods feeding from these sources have been out of power supply since midnight when the disconnection was effected midnight on Tuesday, April 26th, 2023.
“This action by the Market Operator is as a result of poor remittance by Kaduna Electric and other defaulting players to the market.
“We seize this opportunity to restate that as a company, we prioritize providing reliable and uninterrupted power supply to our customers. However, to maintain this level of service, we require timely payment for the energy consumed. Payment for electricity is essential to ensure the sustainability of our operations, and it is a responsibility that we all share.
“We apologise for the inconvenience this action by the Market Operator has caused and the impact it will have on your daily activities.
We are working closely with all stakeholders to find a sustainable solution to the situation. Our goal is to restore power supply to all our customers as soon as possible.
“We appeal to all our customers to honor their payment obligations promptly to ensure continuous and uninterrupted power supply. We value our customers and we remain committed to providing you with the best service possible.” Abdullahi said.
The General Manager, Public affairs of TCN, Ndidi Mbah, while responding to the situation, said that the Market Operator was mindful of the need to ensure the continued sustenance of the Nigerian Electricity Supply Industry (NESI), which requires strict adherence to Market Rules and the application of sanctions where necessary.
She said that recently the Market Operator suspended APLE Electric Limited, Kano and Kaduna Electricity Distribution Companies for breach of the Market Rules, which governs and sanitizes the Nigerian Electricity Supply Industry.
According Mbah, “Due diligence was observed by the Market Operator before issuing the suspension/disconnection order which is in accordance with procedures of the rules guiding the market. This is to ensure the preservation of the Market and that non-compliant Participants are held accountable for their actions.
She explained that the APL Electric Limited was found to be in non-compliance with the Market Rules for not having adequate Bank Guaranty and for incomplete payments of APLE’s Market Operator’s invoices for September 2022 to February 2023.
“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. Consequently, a Notice of Event of Default was issued to APLE on 7th of December 2022, for incomplete payment of issued invoices.
“Following the Notice of Event of Default, a Notice of Intent to Issue a Suspension Order was issued on 14th December 2022. Based on the Market Rules APLE requested for a Hearing which was held online on the 20th of December 2022, where APLE was given an opportunity to show just cause why it should not be issued a Suspended/Disconnected Order.
“After the hearing, a 14-business day notice was issued on the 21st of March, 2023 in three (3) national daily newspapers (Daily Trust, Guardian & Thisday newspapers), as required by the Market Rules. Thereafter, a Suspension Order was issued on the 19th of April, 2023 which required APLE to cure its Defaults”, Mbah explained
She stated that he Disconnection Order was carried out on the 20th of April, in line with the Market Rules, and that this order resulted in the disconnection of the Feeders within the APLE franchise area until such a time that they provide the required bank guarantee and settle their outstanding invoices with the Market Operator.
Providing further explanation, the GM, said, “Also, the KADUNA and KANO Electricity Distribution Companies 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 time-line 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 they failed to provide the required Bank Guarantees. Consequently, a Notice of Event of Default was issued on 2nd of March 2022, for incomplete payment of invoices.
“This was followed by a Notice of Intent to Issue a Suspension Order, issued on 9 May 2022. Both DisCos requested for Hearing which were held on 31st May 2022 (KEDCO) and 2 June 2022 (KAEDCO), where both DisCos were given an opportunity to show just cause not to be suspended/disconnected.”
She said the disconnection Order was carried out on the 26th of April, 2023 in line with the Market Rules. This order resulted in the disconnection of the major Feeders within the franchise areas of both KAEDCO and KEDCO, until such a time that they provide the required bank guarantees and settle their outstanding invoices with the Market Operator.
The Market Rules provide clear and concise procedures for enforcing compliance with its provisions, and in these cases, the Market Operator acted in accordance with procedures to ensure that non-compliant Participants are held accountable for their actions.
