Power outages threaten Abuja, three states as TCN suspends AEDC

Residents in Abuja, the Federal Capital Territory, and three neighboring states – Kogi, Nasarawa, and Niger – face potential blackouts following a suspension order issued by the Transmission Company of Nigeria (TCN) against the Abuja Electricity Distribution Company (AEDC).
The TCN, a government-owned entity responsible for transmitting electricity across the country, accused AEDC of non-compliance with market regulations. Specifically, the suspension notice cites AEDC’s failure to provide an adequate bank guarantee, a violation of Section 15.3.3 of the Market Rules.
This development raises concerns about the financial health of AEDC and its ability to meet its obligations within the Nigerian electricity market. The suspension order, with the reference number TCN/ISO/MO/2024/002, outlines a five-day window for AEDC to rectify the situation before facing disconnection from the national grid. The proposed disconnection date is July 28th, 2024.
“This is a formal suspension notice to Abuja Electricity Distribution Company due to noncompliance with provisions of the market rules and failure to provide the Market Operator with an adequate bank guarantee in line with section 15.3.3 of the Market Rules.
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“The MO had previously notified AEDC in writing of its default of the Market Rules via; 1. Request for Fulfillment of Prudential Requirement dated February 13, 2024. 2. Notice of Event of Default: Non-Fulfillment of Prudential Requirement dated March 22, 2024 and, 3. Notice of Intent to Issue a Suspension Order: Non-Provisions of Adequate Bank Guarantee dated April.8, 2024.
“The MO in these notices requested that corrective actions be taken within a specified period to cure the default. In spite of all notifications, AEDC failed to cure this default. In view of this non-compliance, AEDC is hereby suspended from the MO administered electricity market. No new contract or agreement shall be entered into with AEDC within the suspension period,” TCN stated.
The potential impact is significant. AEDC is the sole electricity distributor for Abuja, a major metropolis with a population exceeding three million. The company also serves the aforementioned states, affecting millions more residents and businesses. A complete blackout in these areas would severely disrupt daily life, impacting everything from homes and hospitals to businesses and essential services.
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