The Transmission Company of Nigeria (TCN) has taken decisive action against Ajaokuta Steel Company Limited (ASCL) due to non-compliance with market rules, issuing a 14-day disconnection notice.
According to TCN’s statement, ASCL has accumulated a substantial debt of N33.71 billion as of November 2023, with N30.85 billion owed for energy and capacity supplied by Nigerian Bulk Electricity Trading PLC (NBET) and N2.22 billion to service providers.
Despite prior notifications and interventions by the Minister of Power to rectify the defaults, ASCL’s non-compliance remains unresolved.
TCN has demanded the settlement of outstanding invoices and the provision of bank guarantees within the specified 14-day period to avoid disconnection from the National Grid, as per Section 45 of the Market Rules.
Failure to rectify these defaults within the stipulated timeframe may lead to disconnection, and if left unresolved after 30 business days, the Market Operator may terminate ASCL’s Market Participation Agreement, escalating the matter to the Nigerian Electricity Regulatory Commission (NERC) for further action.
This action by TCN follows a hint in the NERC’s 2022 annual report regarding the potential disconnection of Ajaokuta Steel from the national grid due to its significant indebtedness of N25.06 billion.
