The Federal Government has ordered the disconnection of three electricity distribution companies (DisCos) from the national grid over “non-compliance with the conditions of market rules”.

In notices issued by the market operator, an arm of the Transmission Company of Nigeria (TCN), a directive has been given for the suspension of Eko, Enugu and Ikeja distribution companies for failing to renew their security cover.

The DisCos were given the room to address the situation but they were alleged to have refused to respond within the stipulated time.

The market operator enforcement panel (MOEP) recommended the suspension of Enugu DisCo having defaulted in payment and not addressing the issue within the stipulated time.

“That Enugu Electricity Distribution Company (EEDC) is under suspension through Market Operator issued Order TCN/ISO/MO/002,” the notice read.

“That Enugu Electricity Distribution Company (EEDC) has been suspended from the Market Operator Administered Market due to an EVENT OF DEFAULT that was not remedied. EEDC was notified of this EVENT OF DEFAULT by a NOTICE OF EVENT OF DEFAULT (NED/2019/002) dated May 24, 2019.”

A directive was also given for the suspension of Ikeja Electricity Distribution Company on similar grounds.

“The restriction of Ikeja Electricity Distribution Company intake from the grid through a Disconnection Order to the Transmission Service Provider to disconnect some facilities of Ikeja Electricity Distribution Company until the Event of Default stated in NIISO/2019/003 is remedied,” the notice to Ikeja DisCo read.

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