Business and Economy
TCN Issues Warning to Ajaokuta Steel Company Ltd Over Unsettled Bills
By Admin
The Transmission Company of Nigeria (TCN) has served a stern warning to the Ajaokuta Steel Company Limited (ASCL) due to their persistent non-compliance with market regulations, delivering a 14-day notice of disconnection.
TCN’s official statement highlights ASCL’s mounting debt, reaching N33.71 billion as of November 2023. This sum comprises N30.
Despite prior interventions and notifications from the Minister of Power to rectify these defaults, ASCL has failed to address the outstanding payments, prompting TCN’s decisive action.
The ultimatum issued by TCN mandates the settlement of all outstanding invoices and the provision of bank guarantees within the prescribed 14-day period to prevent disconnection from the National Grid, as stipulated in Section 45 of the Market Rules.
Failure to meet these requirements within the given timeframe may result in an immediate disconnection. Additionally, prolonged non-compliance beyond 30 business days could lead to the termination of ASCL’s Market Participation Agreement by the Market Operator, thereby necessitating the involvement of the Nigerian Electricity Regulatory Commission (NERC) for further steps.
TCN’s action against ASCL follows indications in NERC’s 2022 annual report, which hinted at the potential disconnection of Ajaokuta Steel from the national grid due to an outstanding debt of N25.06 billion.
