The Transmission Company of Nigeria (TCN) has threatened to disconnect Ajaokuta Steel Company Limited (ASCL) and APL Electric Limited-Aba (APLE) for failing to pay their electricity bills that have accumulated to over N44 billion.
According to a public notice issued by the Market Operator of TCN, the two companies failed to comply with electricity market rules, thus, risking the suspension.
For ASCL, the TCN said the advert was a formal suspension notice: “As of the November 2023 billing cycle, ASCL has accumulated a total outstanding debt of N33,071,002,129.49 billion comprising of N30,849,749,981.01 billion for energy and capacity delivered by Nigerian Bulk Electricity Trading PLC (NBET) and N2,221,252,148.48 owed to Service Providers.”
It added that on the 20th of March 2023, the MO issued a notification to the company for corrective actions within a specified period but an intervention by the Minister for Power temporarily halted enforcement actions to allow the company an opportunity to rectify its defaults.
While stating that the defaults remain unresolved, ASCL is required to settle all outstanding invoices and provide an adequate bank guarantee of N70,177,727.39 for MO’s invoice and N320m for NBET’s invoice within 14 days from the date of this notice.
“Failure to rectify these defaults within the specified period will lead to the disconnection of ASCL’s network from the National Grid, by section 45 of the Market Rules.”
It added that should the defaults remain unresolved after 30 business days of disconnection, the MO would proceed to terminate ASCL’s Market Participation Agreement and escalate the non-compliance matter to the Nigerian Electricity Regulatory Commission (NERC) for Business Continuity Regulation to commence.
For APL Electric Limited-Aba, it said the company had accumulated a total outstanding debt of N10,951,460,668.62, comprising N9,356,043,543.70 for energy and capacity delivered by Niger Delta Power Holding Company (NDPHC) and N1,595,417,124.92 owed to service providers.
It said to avoid disconnection, APLE Electric is required to settle all outstanding invoices and provide a bank guarantee of N331,222,149.10 for MO’s invoices and N3bn for NDPHC’s invoice, within 14 days and failure to rectify the defaults within the specified period would lead to the disconnection of its network from the national grid.
“Should the defaults remain unresolved after 30 business days of disconnection, the Market Operator will proceed to terminate APLE Electric’s Market Participation Agreement and escalate the non-compliance matter to the Nigerian Electricity Regulatory Commission (NERC) for Business Continuity Regulation to commence.”
Source: https://energynewsafrica.com
Discover more from Energy News Africa
Subscribe to get the latest posts sent to your email.