The 11 electricity distributions
companies (Discos) in Nigeria’s power sector on Wednesday alleged that
the inability of the Transmission Company of Nigeria (TCN) to wheel
maximum generated electricity to their respective networks was costing
them a monthly revenue of N1 billion.
The Discos spoke through their platform,
the Association of Nigerian Electricity Distributors (ANED) in response
to TCN’s recent claims that the Discos and not it was the weakest link
in the country’s electricity value-chain.
Their claim of TCN’s operational
ineptitude was contained in a statement from the Executive Director,
Research and Advocacy of ANED, Mr. Sunday Oduntan in Abuja.
ANED said the TCN still had the unholy
character of defunct and hugely corrupt Power Holding Company of Nigeria
(PHCN), adding that the company has not been able to guarantee its
members mostly in the north stable power supply.
It explained that the Discos as alleged
by TCN, could not be rejecting power or load-shedding their customers
because the economics of their tariff was built on improved power
distribution and consequent revenue collection.
It also noted that TCN’s plan to execute
22 transmission projects and improve their willing capacity to above
6000 megawatts (MW) within 2016 was doubtful given that the country was
already within the fourth quarter of its financial year and no tangible
fund has been given to the TCN for the projects by the government.
“It is unfortunate that the new
management of TCN, with the departure of Manitoba Hydro, rather than
reach out, in partnership, to work with the other stakeholders of the
sector, is more interested in pointing fingers and playing the blame
game.
“No matter how TCN wants to play it to
color the reality of transmission shortcomings, transmission remains the
weakest link in the power value chain,” said ANED.
It said: “To date, the maximum wheeling
capacity reached by TCN has been 5,074.7MW versus its claims of
increased capacity from 5,500MW to 6,000MW, wholly untested and
unproven.
“Any plans by TCN to complete 22
critical projects captured in the 2016 budget has to be a function of
the availability and release of the requisite funding required for same.
Given that we are in the fourth quarter of 2016, it is not clear that
TCN has received, nor will it receive, any funding that comes close to
enabling it complete the indicated projects – a continued legacy of
limited and poor funding of a vital aspect of power infrastructure.”
It explained that: “In view of the dire
need of generation, as well as the generation thresholds in the Discos’
tariffs, which constitute the basis of their revenue recovery, it is
inconceivable to think that any Disco would load-shed, thereby
diminishing its revenue prospects and alienating its customers.
“Factually, a major contribution to the
liquidity challenges that the Discos are currently experiencing is TCN’s
infrastructure and technical limitations in wheeling power to the
proper areas of a Disco’s geographical footprint.”
“Discos are currently experiencing a
monthly loss in excess of N1 billion due to limited transmission
capacities in various areas of the country, especially the northern
part. Even worse, is TCN’s inability to meet its financial obligations,
relative to this shortfall, thereby compromising the Discos’ ability to
meet their obligations to the Market Operator,” it added.
ANED said it will welcome TCN’s
operational improvement which it said can only happen with proper
funding, upgrade of its project management capacity, and competent
personnel.
It said the power privatisation was
premised on turning around the operational profile of the TCN but that
progress in that direction has remained quite minimal.
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