Electricity Distribution Companies, DisCos, in the country are losing N1billion monthly due to the limited capacity of the Transmission Company of Nigeria, TCN, to wheel power to them.
Association of Nigerian Electricity Distributors (ANED) Executive Director, Research & Advocacy, Sunday Olurotimi Oduntan, in a statement, said that the situation was worsened byTCN’s inability to meet its financial obligations, thus, compromising the DisCos’ ability to meet their obligations to the Market Operator.
Speaking on Wednesday, August 24, he said: “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.” He described the TCN as “the weakest link of the old National Electric Power Authority.”
TCN had in a press briefing identified the DisCos as the weakest link in the power sector, stressing that the companies were rejecting load allocations.
However ANED said unless the TCN is properly funded, its capacity will remain weak. It expressed doubts over the ability of TCN to accomplish its 22 expansion projects because it was uncertain if the Federal Government will fund the plan.
Countering the TCN’s wheeling capacity claim, the statement noted that to date, the maximum wheeling capacity reached by TCN has been 5,074.7 Mw (attained February 2nd, 2016) versus its claims of increased capacity from 5,500 Mw to 6,000 Mw, wholly untested and unproven.
