TCN set to split

The Nigerian Electricity Regulatory Commission (NERC) has initiated the processes to split the Transmission Company of Nigeria (TCN) into two firms. An attempt to split the TCN five years ago was botched.

In a consultation paper titled, NERC/ CP/2020/01, NERC called on stakeholders to turn in comments within one month (August 5, 2020), on the procedure for splitting the power transmission utility firm.

TCN is responsible for operating the national power grid, network maintenance, load allocation as well as the reconciliation of energy payments for participants in the Nigerian Electricity Market (NEM).

In the latest process to split TCN, NERC said upon the power sector privatisation, the Electric Power Sector Reform Act (EPSRA) 2005, said TCN should be split to ensure independence.

NERC said it had consulted stakeholders in May 2015 towards splitting the firm but that, “The initiative was not concluded on account of the eventual expiration of the tenure of the last Commission.”

Giving a hint on the new process, the Commission said the first option is that the System Operator (SO) may continue to be a part of the corporate entity of the TCN but operating within the rules of the market and in such a manner to ensure its operational and financial autonomy.

The second option is to have a Federal Government-owned ISO agency with public staff, management and Board of Directors. It may also create a stakeholder-owned ISO agency, which entails operators of the electricity market, consumer groups and NGOs.

Daily Trust Saturday reports that on May 18, 2015, a former Minister of Power Prof. Chinedu Nebo, issued a circular splitting the TCN into Transmission Service Provider (TSP) and the Independent Service Operation (ISO) sections of TCN. Engr. Abubakar Atiku was appointed MD/CEO of the TSP while Mrs Ngozi Osuhor was appointed as the MD/CEO of ISO.

NERC under the former Chairman, Dr Sam Amadi quashed the process, saying due process was not followed as NERC which had issued licences to TCN, must endorse such action.

A stalemate also ensued between the ministry and the then TCN board led by Ibrahim Dahiru Waziri saying the board was not consulted.