The Enugu Electricity Distribution Company (EEDC) has expressed concern over the way the Transmission Company of Nigeria (TCN) is handling the issue of security cover due to be posted by the disco.
The Disco, which stated this in a letter to the TCN that was signed by its Deputy Managing Director, also urged the transmission company, “to vacate and retract,” a newspaper publication announcing its suspension as a market participant.
“EEDC wishes to state that the publication is a premeditated act of utmost bad faith, calculated to embarrass EEDC and same has indeed embarrassed in the eyes of esteemed customers as EEDC has been inundated with enquiries as to the status of EEDC as a licensee,” it insisted.
EEDC said it was surprised that an advisory letter on level of security cover was sent to it a day after the market operator (MO) announced through a newspaper publication, its suspension as a market participant in the Nigerian Electricity Supply Industry (NESI).
The TCN had in a letter sent to EEDC on June 26, 2019, stated that, “EEDC average, lowest and highest monthly bill for year 2018 were N724, 491, 451.08; N653, 172, 505.63; and N844, 339, 097.24 respectively.”
It had added that the, “estimated three months security cover derived from these are N2,173, 474,353.23; N1, 959, 517,516.90; and N2, 533, 017, 291.72 respectively.
It had also stated that, “EEDC’s average, lowest and highest monthly bill for the first three months of year 2019 were N811, 033, 325.02; N740, 962, 166.62 and N875, 362, 197.82 respectively. It had said the estimated three month security cover derived from these are N2, 433, 099, 975.07; N2.222, 886, 499.86; and N2, 626, 086, 593.46 respectively.
“As a result of the above analysis, you are advised to provide a security cover not less than 2, 433, 099, 975.07 Naira, assuming you have not done this calculation as expected”.
However, in response to the TCN’s letter, the EEDC in a letter addressed to the Executive Director, Market Operator, TCN, dated June 26, 2019, with the titled: Re: Advisory on Level of Security Cover to Post,” stated: “Your letter with Ref. No.MO/003/017/004/2019 dated 26th June, 2019 but received after close of business via the same date, in refers.
The letter further read: “In the said letter, you finally advised EEDC on the amount of Security Cover to be posted and suggested that EEDC ought to know the level of cover. We wish to state that being the market operator of the Nigerian Electricity Market, MO is under a duty to before now advise a market participant of the level security cover posted and that cannot be said to be aware by such a market participant.”
The Disco said it was surprised that the advisory came a day after MO caused a publication to be made in a national newspaper, announcing suspension of EEDC as a market participant in the Nigerian Electricity Supply Industry (NESI).
“For purpose of setting the record straight, it is important to reiterate the background fact and/or sequence of events before now. Your office informed EEDC that our security cover posted as a market participant has expired and requested that same be replaced within two weeks. EEDC immediately commenced the process with our bankers, First Bank of Nigeria Limited.
“When we realised that the security cover cannot be procured and delivered to MO within the two weeks period, we wrote back to MO, requesting for an extension to on or before the end of June, 2019.
“Surprisingly, your office issued simultaneously a Notice of Default and another letter informing EEDC that it has been sanctioned for N7,500, 000.00 under Level 4 of offender of the Market Rules 2014. A third letter sent informing EEDC of our right to request for hearing on this matter under the same Market Rules.”