• Tuesday, April 23, 2024
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TCN disconnects Ajeokuta Steel Company over N33bn debt

India asks companies to fire-up power plants to meet rising electricity demand

The Transmission Company of Nigeria (TCN) has disconnected Ajaokuta Steel Company Limited (ASCL) from the national grid as the moribund company failed to clear a debt of N33 billion owed to the Nigerian Bulk Electricity Trading PLC (NBET) and service providers.

The TCN announced its decision in a letter dated January 4, 2024, which was signed by E.A. Eye, acting executive director, and an independent system operator. The debt comprised N30.8bn for energy and capacity delivered by NBET and N2.2bn owed to service providers.

“This is a formal suspension notice to ASCL due to non-compliance with provisions of the Market Rules as of the November 2023 billing cycle. ASCL has accumulated a total outstanding debt of N33,071,002,129.49, comprising N30,849,749,981.01 for energy and capacity delivered by NBET and N2,221,252,148.48 owed to service providers.

“On March 20, 2023, the MO issued a notification to ASCL for non-compliance with the Market Rules and requested corrective actions within a specified period, as advertised in three national newspapers.

“Despite a ministerial intervention by the Minister of Power, which temporarily halted enforcement actions to allow Ajaokuta Steel Company Limited (ASCL) the opportunity to rectify its defaults, these defaults remain unresolved.

“Failure to rectify these defaults within the specified period will lead to the disconnection of ASCL’s network from the national grid under Section 45 of the market rules,” the letter read.