DisCos remittance to TCN hits 35%

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The Market Operator (MO) of the Transmission Company of Nigeria (TCN) on Thursday said that the monthly remittance of the 11 electricity Distribution Companies (DisCos) has now increased marginally to 35 per cent.

Speaking at a participant and stakeholders meeting in Abuja, the Executive Director of Mo, Mr Moshood Saleemanvowed to enforce compliance and penalties for defaulters.

He said: “We now experience a marginal increase of 35 per cent in the remittances of the DisCos but we are not yet there; it is improving gradually.”

Saleeman said in spite of the three years after privatisation and about two years into the Transition Electricity Market (TEM), the power sector is still experiencing liquidity. He noted penalties will be strictly enforced especially on Market Rule 45 about market payment.

Continuing, he said: “Henceforth, MO will enforce the rules and penalise defaulters – MR 45. From today, we are going to ensure that all the rules are complied with. They include rules about payment to the market, and other essential rules for the market to grow.”

The MO noted that Nigeria has 150-kilo watt of electricity per capita and that is below average in other countries, with less than half of the population having access to power.

The Transmission Service Provider (TSP) Head, Engr. Tom Uwah said its section of TCN is still battling with high frequency that tends to system collapse of nationwide blackout. He said the challenge was because some DisCos may not still be taking power generated by the GenCos.

The Managing Director of TCN, Mr Usman Gur Mohammed urged the participants to avoid the blame game and work towards promoting the power sector. 

Represented by the Director, Finance & Accounts, Mr Sunny Iroche, the TCN boss said load unutilisation (rejection) is still a challenge. “Load rejection causes high frequency in transmission when the DisCos reject load and we have to tell the GenCos to reduce generation so we can balance the system,” he said.

He said TCN has improved its capacity to 6,500 megawatts (mw) and that the highest generation ever recorded was 5,074mw in February 2016 of which TCN was able to wheel. 

He said TCN has reduced the transmission loss to eight per cent urge other participants to do more. “The power reforms in other climes like Brazil starts with the commercial end, when you are sure the DisCos can accept, distribute energy and meter close to 95 per cent of the customers, you can then address issues of generation and transmission at once,” he said.

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