The Transmission Company of Nigeria (TCN) lamented on Tuesday that the 11 electrical distribution companies were not paying them for their services (Discos). The payout percentage has dropped from 55% to 30%.
The Discos pay the market operator of the TCN for the energy that has been allotted to them in the electrical market.
The Nigerian Electricity Regulatory Commission (NERC), following the Minimum Remittance Order framework, establishes the minimum market remittance from each DisCo after removing any tariff shortfall resulting from the Nigerian Bulk Electricity Trading Company (NBET and MO market invoice).
However, the company’s managing director, Engr. Sule Ahmed Abdulaziz, gave the suggestion during the 5th National Council on Power (NACOP) in Abuja, expressing concern over the company’s lack of funding in the electrical market.
The TCN accruable revenue has significantly decreased, he continued.
He said in the recent past, the market’s payment for TCN services decreased from 55% to 30%, and as a result, the amount of money TCN receives in the form of revenue has also decreased significantly.
To acquire the right-of-way and deal with encumbrances on its existing right-of-way, the managing director sought the help of the States.
He also urged the States to assist in stopping vandalism and soil encroachment near its towers.
According to him, TCN has also made impressive strides in the maintenance of transmission lines; vegetation beneath the lines is continuously removed to prevent unneeded faults brought on by vegetation, which has helped to shorten downtime.
Abdulaziz stated that TCN was appreciative of the state governments, particularly the government of Kano state, which recently provided it with N500 million as part of compensation for the right-of-way for the Rimin Zakara – Kumbotso line.
Through its Nigeria Electricity Grid Maintenance, Expansion, and Rehabilitation Program, TCN has significantly improved the grid (NEGMERP).
He outlined how new substations including the 2x60MVA, and 132/33KV Substations at Gagarawa, Wudil, Ukpilla, Daura, and Bichi Mobile Station were all finished under the NEGMERP. The installation of 60 MVA in Itire (Lagos State) and 150 MWA in Aiyede, respectively, was most recently completed, he continued, adding that several older substations had been strengthened with new transformers and related switchgear (Oyo State November 2022).