TCN TO DISCONNECT AJAOKUTA STEEL, ABA ELECTRIC OVER N44BN DEBT
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The Transmission Company of Nigeria (TCN) has threatened to disconnect Ajaokuta Steel Company Limited (ASCL) and APL Electric Limited-Aba (APLE) due to non-payment of electricity bills that have accrued to over N44bn.
In an advertorial published on Daily Trust yesterday, the Market Operator of TCN stated that 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 billion 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 of 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 million 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, in accordance with 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 has accumulated a total outstanding debt of N10,951,460,668.62 billion, comprising N9,356,043,543.70 billion for energy and capacity delivered by Niger Delta Power Holding Company (NDPHC) and N1,595,417,124.92 billion 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 million 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.”
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