The Transmission Company of Nigeria (TCN) has officially suspended the Abuja Electricity Distribution Company (AEDC) due to its failure to comply with market rules and the terms of its market participation agreement.

This decision was announced on Friday and is expected to impact electricity supply in the Federal Capital Territory and surrounding states, including Kogi, Nasarawa, and Niger.

According to TCN, the suspension order, identified as TCN/ISO/MO/2024/002, was issued after AEDC failed to provide an adequate bank guarantee, a requirement outlined in Section 15.3.3 of the market rules.

TCN's Market Operator, Ali Ahmad, stated that AEDC had been previously notified of its non-compliance through several written communications, including a request for fulfillment of prudential requirements on February 13, a notice of event of default on March 22, and a notice of intent to issue a suspension order on April 8. Despite these notifications, AEDC did not take corrective actions.

In light of this non-compliance, TCN has mandated that AEDC must provide the required bank guarantee within five business days from the date of the suspension notice.

If AEDC fails to comply, TCN has warned that it will disconnect AEDC from the national grid, with the disconnection scheduled for July 28, 2024. The specific points of disconnection include key feeders from the Katampe 1 and Central Area transmission stations.

The implications of this suspension could lead to significant power outages for residents in the affected regions, as AEDC plays a crucial role in electricity distribution in these areas.

TCN has emphasized that no new contracts or agreements will be established with AEDC during the suspension period, and if the situation is not remedied within 30 business days following disconnection, TCN will terminate AEDC's Market Participation Agreement.