Lagos, Jan. 8, 2024: Some power experts have said that unbundling of the Transmission Company of Nigeria (TCN) would lead to increased efficiency, performance and stability of power in the country.
The experts disclosed this in separate interviews on Monday in Lagos.
The Federal Government on Dec. 20, 2023 disclosed that TCN would be unbundled into two distinct entities.
Speaking, Dr Akinrolabu Olukayode, Chairman Customer Consultative forum EKEDC Festac/ Satellite District, said that the unbundling would potentially improve the overall performance and reliability of the power transmission system.
Olukayode said that the decision to unbundle TCN into two separate entities, the Independent System Operator (ISO) and the Transmission Service Provider (TSP), could have several potential benefits.
“By separating the responsibilities of managing the national power grid and delivering bulk electricity, it may lead to increased efficiency and specialisation in each area.
“The restructuring of TCN into ISO and TSP is intended to address the lingering challenges within TCN.
“The ISO will be responsible for managing the national power grid, while the TSP will focus on delivering bulk electricity.
“This separation of roles could potentially lead to better coordination, improved system management, and enhanced accountability.
“However, the success of this restructuring will depend on various factors, including effective implementation, adequate resources and proper oversight,” he said.
According to him, it is important to note that the effectiveness of these measures can only be determined over time as the restructuring process unfolds and its impact on the Nigerian electricity sector becomes evident.
He advised the government to work closely with stakeholders, including Discos, regulators, and consumer advocacy groups.
This, he said, was to develop and implement effective strategies to address the challenges and improve the overall performance of the power sector.
On system collapse and TCN’s weaknesses, Olukayode said the admission by the government that TCN was the weakest segment in the Nigerian Electricity Supply Industry (NESI), suggested that there had been significant challenges and issues with TCN’s operations.
He said that system collapses could have severe consequences, including power outages and disruptions to businesses and daily life.
He said that addressing these weaknesses was crucial for ensuring a stable and reliable power supply.
Also, Adetayo Adegbemle, the Executive Director, Initiatives for Electricity Rights (PowerUp Nigeria), said: “The Federal Government has said so many things, unbundling of TCN being one of them.
“What we have not seen is the proposal on how they want to go about it, a policy paper detailing its benefits as well.
“Seeing TCN as the weakest link in the power sector has been a perennial allegation.
“However, what such reasoning is not taking into consideration is the amount of investment that has gone into TCN in, at least, the last four years.
“Many of the projects, which was designed to increase the wheeling capacity of TCN, will start coming on stream during this year,” he added.
On removal of subsidy on electricity, Adegbemle, who agreed with the step, said that the government resources could not continue to support the subsidy.
He said that the subsidy, designed to benefit the vulnerable Nigerians, was no more benefiting the poor ones.
He added that the nation had kept sacrificing efficiency in the name of subsidy.
