Kano Electricity Distribution Company (KEDCO) is stuck on its inability to post N484.5 million to meet its N1.215 billion letter of credit (LC) guarantee requirement to pay for ancillary energy services in the electricity market since July 2019.
The distribution company (DisCo) was suspended from the electricity market on July 29, 2019 and August 6, 2019 and has remained suspended as it battles to meet the obligation. It was found that Kano DisCo defaulted in the topping up of its LC in May 2019 along with other DisCos.
Its guarantee-LC is being held by a commercial bank and in the case of payment default, the Market Operator (MO) which administers the market, draws from it to ensure a 100 per cent payment of ancillary services in the Nigerian Electricity Market (NEM) as specified by the Market Rule.
This government must not raid investors’ money