KEDCO decries ‘inappropriate’ suspension by TCN

The Kano Electricity Distribution Company (KEDCO) has faulted the action of Transmission Company of Nigeria (TCN) over energy supply as illegal and unwarranted.

TCN in its official twitter handle, on Sunday, announced the suspension of KEDCO for alleged default in observance of Electricity Operator Administered Market Conditions and Market Participation Agreement.

According to TCN, the Market Operator has issued KEDCO with notice of default with reference No NED/2019/004, dated 9th July 2019.
Another notice of intent tagged No. NIISO/2019/005 dated 15th July was also issued by TCN informing KEDCO of the suspension from the market and restriction of some its rights in the market place.

But KEDCO debunked TCN’s claims, insisted the disco was not afforded the required fair hearing, accusing the TCN of violating its 15 days notice within which KEDCO should show cause otherwise.

A statement signed by KEDCO’s Head, Corporate Communication, Ibrahim Sani Shawai, lamented that the purported action of TCN “cannot and should not stand”, adding that with the issuance of TCN “the Market Operator is only resorting to self-help and intimidation”.

“The management’s attention has been drawn to a publication that the management of Transmission Company of Nigeria (TCN), has issued suspension and disconnection orders to Kano Electricity Distribution Company (KEDCO) from the electricity market. If truly TCN has taken this action, then it is in error and misguided.

“TCN issued KEDCO with notice of suspension, which KEDCO considered inappropriate and therefore requested for hearing before the Market Operator under the Market Rules. The Market Operator scheduled the hearing for Friday 19th. Unfortunately, KEDCO received the letter same Friday 19th and was unable to attend.

“Under the Market Rules if a Participant requests for a hearing, the Market Operator must within 15 Business Days offer the Participant reasonable opportunity to show cause why the action cannot be taken against it. Therefore, KEDCO is still within time to show cause and no reasonable opportunity has been given to it by the Market Operator”.

Shawi further, “Moreover KEDCO has written a petition to the Stakeholder Advisory Panel a body set up to administer the Market rules jointly with Market Operator on the action of the Market Operator inimical to both KEDCO’S operations and the industry.

“We, therefore, wish to state categorically that KEDCO is a law-abiding organisation as we have adhered to all market condition and market participation agreements and will continue to honour all laid down agreements by the regulators.

“We hereby see this act of suspension as an action that has not followed due process, cannot stand and a disservice to KEDCO, a major distribution company that has contributed to the growth and development of the economy of northern Nigeria,” KEDCO noted.