Lifting of Suspension Order against IKEDC Print
Written by Onem Public Affairs   
Wednesday, 03 July 2019 21:19

TRANSMISSION COMPANY OF NIGERIA (TCN)

INDEPENDENT SYSTEM OPERATOR

Notice of Lifting Suspension Order

(Order: TCN/ISO/MO/2019/004)

Issued against Ikeja Electricity Distribution Company Before the Market Operator, Independent System Operator, Transmission Company of Nigeria.

In the matter of non-compliance with the conditions of Market Rules and Market Participation Agreements.

WHEREAS:

1. Ikeja Electricity Distribution Company (IKEDC) was suspended from the Market Operator Administered Market due to an EVENT OF DEFAULT. IKEDC was noticed of this EVENT OF DEFAULT by a NOTICE OF EVENT OF DEFAULT (NED/2019/003) dated May 24, 2019.

 

2. In line with Section 45.3.7 of the Market Rules IKEDC was issued a “Notice of Intent to Issue Suspension Order (NIISO/2019/003)” dated May 31st, 2019 indicating the intention of the Market Operator to suspend IKEDC from the Market Operator Administered Market and restrict some of its rights in the Market Operator Administered Market. IKEDC was also reminded of its right pursuant to Section 45.3.8 to request a hearing before the Market Operator to show cause why the Market Operator should not issue a Suspension Order or Disconnection Order against it.

3. IKEDC responded to the “Notice of Intent to Issue Suspension Order (NIISO/2019/003)”dated May 31st, 2019 within the 5 days or 2 Business Days stipulated by the Market Rules by forwarding a Bank Guarantee issued on its behalf by Zenith Bank on June 3, 2019. The Bank Guarantee dated June 3, 2019 was received on June 6, 2019.

4. The Market Operator deemed the Bank Guarantee issued by Zenith Bank on behalf of IKEDC insufficient and this which was communicated to IKEDC. The Market Operator requested IKEDC to provide an adequate Security Cover within a specified period in a letter dated June 13, 2019 or risk suspension.

5. IKEDC did not provide an adequate Security Cover within the stipulated time.

6. Based on Markets Rules 45.3.9, 45.3.12 and 45.3.13, the Market Operator suspended IKEDC from Market Operator Administered Markets.

7. IKEDC has now forwarded a new Bank Guarantee, issued on its behalf by Zenith Bank, to the Market Operator. The Bank Guarantee dated June 27, 2019 was received on July 1, 2019.

8. The Market Operator deems the Bank Guarantee adequate.

9. Market Rules 45.3.11 states that:

“The Market Operator shall lift a Suspension Order issued pursuant to Rule 45.3, if the Event of Default in respect of which it was issued is remedied and there are no other subsisting Events of Default with respect to the Suspended Participant, provided that the Market Operator may, upon lifting the Suspension Order, impose such conditions on the authorisation of the Participant to participate in the Market Operator Administered Market as it deems appropriate including, but not limited to:

(a) establishing a lower trading limit in respect of the Participant than would otherwise be applicable to the Participant under these Rules;

(b) establishing a more frequent continuing schedule of payments than would otherwise be applicable to the Participant under these Rules; or

(c) Imposing more stringent Prudential Requirements than would otherwise be applicable to the Participant under Rule 15.3.”

10. Based on Market Rules 45.3.11, the Market Operator hereby notices the Transmission Service Provider, System Operator, other Participants and the General Public that:

(a) the Market Operator Order TCN/ISO/MO/004 suspending Ikeja Electricity Distribution Company from the Market Operator Administered Markets is hereby lifted.

BY THE NOTICE OF THE MARKET OPERATOR DATED THIS 2nd DAY OF JULY 2019

Engr. E.A. EJE MARKET OPERATOR

 


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Last Updated on Thursday, 04 July 2019 04:49