The Nation Newspaper

Tag: TCN

  • TCN eyes 6,000mw in 2018

    TCN eyes 6,000mw in 2018

    • Tariff review for NERC

    The Transmission Company of Nigeria (TCN), yesterday said it was working towards a national peak of 6,000 Megawatts (Mw) of electricity in early 2018.

    Its Interim Managing Director, Usman Gur Mohammed, who made this known  in Abuja, said early this year, the average peak load was about 4,000Mw.

    He said the company has submitted a proposal for extra ordinary tariff review to the Nigeria Electricity Regulatory Commission (NERC).

    He said: “TCN has obtained consent and successfully submitted for the first time a proposal for extra ordinary tariff review to the Nigeria Electricity Regulatory Commission (NERC),”saying its approval will significantly increase TCN’s revenue and provide sufficient incentives to generators who provide ancillary services.

    Mohammed said TCN has completed the 2012-2014 and 2015 audited financial statements and that it is looking forward to submitting the 2016 annual audit this month.

    He said the company has reduced wastage through the strengthening of its procurement system and contract administration.

    He said: “We took a bold step on the fiber optic on all transmission infrastructure, which is for control and management of the grid. There cannot be effective and efficient SCADA/EMS system in TCN if the two contracts exist in their current forms.”

    He said TCN has resolved several line issues that lingered for years; the Abuja-Ajaokuta 330kv DC transmission line, which was commissioned in 2015 with only one line in circuit; the second Jebba-Kainji line, which had been out since 2014, was restored in  October 2017.

    He noted that the Asaba-Benin SC line, which was completed since 2014, was energized in November this year, making three lines from Onitsha to Benin.

    Muhammad also said that the second line between Egbin and Ajah 330KV GIS sub-station, which has been out, would soon be awarded.

    The TCN boss said that within the year, the company entered into collaboration with other partners aimed at repositioning it for better service delivery. Some them collaborations include the Agip/NNPC joint venture in respect of towers 94 & 98 on Okpai-Onitsha DC line, provision of GIS for TCN; collaboration with Japan Government on capacitor banks in Apo and Keffi substations and the rehabilitation of Apapa, Akangba and Isolo substations.

    He said that discussions are on-going with government of Japan to rehabilitate Ikeja West and Ota substations.

    According to him, the European Union has pledged to provide €25million grant to support TCN on solar Independent Power Project (IPPs’)  evaluation.

  • Dubious contracts: TCN cancels 150 letters of intent

    Dubious contracts: TCN cancels 150 letters of intent

    • Threatens to disconnect GenCos

    The Transmission Company of Nigeria (TCN) Interim Managing Director, Mr. Usman Gur Mohammed, said he has cancelled 150 letters of intents upon assumption of office.

    He described the company as a fertile ground for fake and dubious contracts for settlement of politicians before his assumption of office.

    “We have stepped on so many toes in TCN. There are so many Nigerians, who take TCN as their farm. All those dubious contracts they were getting we have stopped them from getting them.

    “All those arrangements, including letters of intent, I cancelled 150 letters of intents. A letter of intent is a letter for anarchy; when you give a letter to a contractor and say go and do this job any amount you say, I will pay it. Since I came to TCN, I have not signed a single letter of intent,” he told reporters in Abuja at the weekend.

    The TCN chief also threatened to disconnect electricity generation companies (GenCos), which refuse to comply with the three governor-governor equipment.

    He said the company was going to write to inform the GenCos to comply with the directive or else they will be shut out of the national grid.

    Mohammed said: “We have written to the GenCos telling them to comply with the three governors. Some of the power generators said they cannot comply with the three governor. Those with good machines are complying, but those with bad machines have not complied.

    “We gave them time to comply; some of them have taken time to comply. For example, Jebba was going to use three governors for last week, but they said they were on it already. Those who refused to comply with three governors, we are writing them and we are giving them time, if they don’t comply, we have to shut them out of the grid.”

    He said owing to the discovery of insecurity of the grid in September and October, the firm inaugurated a committee to find out the last time the Nigerian Electricity Supply Industry (NESI) conducted its relay study. The committee discovered that in the last 10 years, the company had not done any relay study.

     

  • Reps query Minister’s utilization of N22bn without result

    Reps query Minister’s utilization of N22bn without result

    The House of Representatives committee on Power Wednesday queried Nigerian Bulk Electricity Trading Plc over the utilization of N22 billion monthly on gas without commensurate result..

    Subsequently the lawmakers summoned the Minister of Power, Mr Raji Fashola over the violation of the 2017 Appropriation Act.

    In a bid to obtain relevant information, the Committee also summoned the permanent secretary, Mr. Louis Edozien and Managing Director of Transmission Company of Nigeria (TCN) to come along with the Minister.

    The minister is to give details on the activities of the power ministry as well as the level of procurement processes of each project.

    The Daniel Asuquo – headed committee summoned to Minister sequel to his absence at a hearing on the issue yesterday.

    While reacting to the submission of the Minister’s representatives, A member of the committee Toby Okechukwu criticized the indiscriminate injection of fund into the distribution companies by Federal Government.

    “I don’t know whether the acquisition of the distribution companies is worth more than N701 billion. The total capital of these companies may not be up to N701 billion. Yet we are borrowing money to support them and give NBET,” he said.

    Mark Gbillah, another member while doubting the liquidity of NBET and TCN, warned that if drastic action is not taken, the power sector faces imminent collapse in the next six to seven years

    His words: “We are trying to pay for the business of certain individuals at that level of gas and generation. We need to do a forensic study of these gas companies.

    “What are they actually generating? What are we always required to pay them? The generating companies always tell us a mongos figures of what they are generating, and how there’s no transmission capacity, the losses that they experience.

    “We need to start from the bottom up as well from the gas angle. Where are these monies going to? This question goes to the Permanent Secretary. What is the utilization of these funds and the level of generation along the value chain, the operating cycle from GENCOS to TCN and DISCOs?

    “Is this the best model in the world? I think NBET only came to complicate the issues in the centre of the value chain,”

    However, the failure of the permanent secretary who represented the Minister to provide detailed information requested by the committee on unauthorized spendings did not help matters.

    The allegation against the ministry was a source of concern to the lawmakers and the minister and the Managing Directors of the Nigerian Bulk Electricity Trading Company and Transmission Company of Nigeria were expected to furnish the committee with answers.

    As far as the committee was concerned, the ministry had frustrated the 2017 appropriation Act.

    The Chairman of the committee, Daniel Asuquo said that the committee had been mandated by the House to protect the interest of the citizens, adding that that the minister and his Permanent Secretary have breached the law.

    The power sector, he said, is poorly managed with a high level of impunity.

    He said: “We are not seeing the will from the Executive because all we see are the people who just want to put us in debt, debt and debt even without passing through due process, because TCN is a can a worm from our own overview.

    “We need to bring out this to the public for them to know the state of our power, we have parleyed too much.. How much of this can the distribution companies take.”

  • Ikeja DisCo begins load-shedding as TCN upgrades facility

    Ikeja DisCo begins load-shedding as TCN upgrades facility

    Some customers under Ikeja Electric’s network will experience massive load-shedding in the next five weeks as Transmission Company of Nigeria (TCN) upgrades some of its facilities, TBI Africa has learnt.

    The Chief Technical Coordinator of Ikeja Electric, Mr. Sunday Oyewole, told reporters that the TCN had announced plans to upgrade TI Ejigbo power transformer and T3 Alimosho power transformer from 30mva to 100mva.

    The upgrade began on Monday, and would last for five weeks, during which some customers of Ikeja Electric Plc would experience increased  load-shedding activity.

    “Details of the project plan indicate that TCN, in order to minimise impact on communities, will effect the upgrade one after the other, upgrading T1 Ejigbo first before work on T3 commences,” Oyewole said.

    Areas that will be affected  include Oke-Afa, Shasha and its environs as well as Ipaja.

    Oyewole said the company would use all channels to mitigate the impact of the upgrade on customers.

  • Reps to probe TCN over $2b foreign loans

    Reps to probe TCN over $2b foreign loans

    The House of Representatives will investigate $2 billion foreign loans which the state-owned Transmission Company of Nigeria (TCN) may have raised without official approval.

    The investigation could be a blow to efforts to improve Nigeria’s creaking power infrastructure, which is often blamed for hobbling growth in Africa’s largest economy.

    The Federal Government privatised most of its power sector in 2013 but retained control of the dilapidated monopoly grid operator,  TCN.

    A member of the House, Hon Simon Arabo, said in a motion that the TCN had borrowed $1.5 billion from the World Bank and other international lenders without securing the approval of the National Assembly as required by the law.

    He described the grid operator’s contract processes as opaque and may have violated procurement laws.

    Arabo did not name the other lenders but said TCN is currently negotiating another loan of $500 million with the Islamic Development Bank (IDB).

    Lawmakers agreed to investigate the activities of the TCN over the past 10 years in respect of foreign loans and contract awards and to report their findings within eight weeks.

    A TCN spokesman did not immediately reply to a message seeking comment neither did the World Bank.

    Reuters was unable to reach the IDB for comments outside of normal business hours by a telephone number and email address listed on its website.

    The ailing power infrastructure means blackouts are common across Africa’s most populous country, forcing many businesses and households to run costly fuel generators. If the country’s power plants were to operate at full tilt, the fragile transmission network would not be able to handle the load.

    President Muhammadu Buhari has pledged to increase power capacity exponentially during his four-year term and to meet the demands of Nigeria’s more than 180 million people entirely within a decade.

  • TCN, Japan to build new power projects

    TCN, Japan to build new power projects

    •’Transmission not weakest link in power supply chain’

    The Transmission Company of Nigeria (TCN) is collaborating with the Japanese Government to build transmission facilities in the country, The Nation has learnt.

    The Japanese Government is specifically targeting Lagos for such investment.

    TCN’s Acting Managing Director/Chief Executive, Usman Gur Mohammed, told The Nation in Lagos that the firm wants to double the transmission capacity and would be doing that from one part of the country to the other.

    Muhammed said the TCN would put significant transmission capacity between Lagos and Ogun states and was collaborating with these states governments to actualise that.

    According to him, the transmission firm wants to double the transmission capacity or put additional 50 per cent of the existing capacity.

    He noted that the Japanese Government was looking at building new and rehabilitating dysfunctional substations in Lagos.

    The TCN chief said: “The TCN is doing a lot in recent times, especially under this government because of the kind of support that we are getting. Recently, we did advert on transmission capacity in Lagos.

    “In every substation in Lagos, we are putting almost half of the capacity that is there. We are doubling the capacity.

    “We are working in collaboration with some other multilateral donors, such as the Japanese government to build some of the substations. For example, Apapa has been taken over by the Japanese government. They are looking at Ojo and Isolo. Those two places will be rehabilitated by the Japanese Government.

    “Generally, Lagos State is very important to TCN and it is working hard to ensure it puts enough transmission capacity there to be able to meet the needs of the electricity distribution companies in Lagos.”

    On the claims that transmission is the weakest link in the power supply value chain, Mohammed said this was  not true as transmission is ahead of generation and distribution links of the chain.

    He said: “Whoever says TCN is the weakest link in the power supply value chain is ignorant of the sector. Transmission is not the weakest link in the chain. Our capacity is higher than all the other arms of the industry. We also have plans to expand the capacity of the transmission more than any other arm of the sector. So, we are always ahead of them and will continue to be ahead of them.”

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola, confirmed what Mohammed said. Fashola said the TCN has capacity to wheel over 6,000 megawatts (Mw) of power.

    “Today, we have more power available to go on the grid over 6000Mw because generation and transmission have improved. The capacities are above what the distribution companies (DisCos) can carry. So, they have to play catch up,” the Minister added.

  • TCN chief working against local content initiative, say contractors

    TCN chief working against local content initiative, say contractors

    Local engineering, procurement and construction (EPC) contractors of the Transmission Company of Nigeria (TCN) have accused the firm’s Interim Managing Director/Chief Executive Officer, Mr. Usman Gur Mohammed, of threatening the local content initiative.

    In a statement, the local contractors accuse the TCN’s boss of preferring to use foreign EPC contractors instead of the local contractors for jobs Nigerian contractors could undertake.

    Besides, they said Mohammed had put many ongoing projects on hold.

    The local contractors said the Federal Government in the last two years, has enforced implementation of local content policies in the ministries, parastatals and agencies by maximising use of local goods, competent local contractors for the rehabilitation and construction of power transmission projects.

    The policy, they said, has helped to fast-track the completion of ongoing transmission projects to help the TCN to be able to wheel more power to the national grid and provide more power for Nigerians.

    The contractors added that Minister of Power, Works and Housing Babatunde Fashola had a meeting with them and discussed payment of outstanding invoices and promised to promptly pay new invoices.

    The local EPC contractors said: “This move has helped to bring back many projects on stream and a number of those projects are slated for commissioning next year. The commissioning of different transmission lines is a huge boost and clear sign that the transmission networks are being expanded.

    “However, as soon as the new CEO of TCN resumed, he has placed many of the projects on hold. He has refused totally to listen to reasons. He wants all the projects whether or not almost completed to go back to tender. The mess is total and the gains of the last two years are being jeopardised.

    “Besides placing several ongoing projects on hold, the TCN boss has failed to understand the legal implications and the potential losses in litigations, delays and liabilities that TCN may incur from his action and the negative impact the situation will have on the power sector. If the new TCN chief is not called to order and prevailed on to stop frustrating local contractors, he will spend most of his time in one conflict resolution or the order in one court case or the other. “

  • TCN appoints personnel to interface with DisCos

    In an effort to resolve and minimize technical challenges, expand the load and promptly attend to Distribution interface issues, the Management of Transmission Company of Nigeria (TCN), has appointed Focal Person to interface with DisCos in order to ensure that the DisCos take more power to the consumers. 

    The Focal Persons were inaugurated recently at the TCN Corporate Headquarters, Abuja.

    In a statement signed by the General Manager (Public Affairs), Ndidi Mbah, TCN noted that management decided to appoint interface Focal Persons in order to upscale power delivery to distribution load centers nationwide.

    The appointees include; Engr. L. C. Okalla, AGM (T), Abuja Electricity Distribution Company (AEDC), Engr. Jude Agupusi, AGM (SO), Port Harcourt Electricity Distribution Company (PHEDC), Engr. A. O. Balogun AGM (T), Ibadan Electricity Distribution Company (IBDC), Engr. C. Iwuamadi, AGM (T) and Engr. S. O. Omoragbon, AGM (SO)  for Eko and Ikeja Distribution companies respectively.

    Others are, Engr. Balarabe Abdullahi, AGM (SO), Kano Electricity Distribution Company (KEDC), Engr. M. S. Nuhu, PM (T), Kaduna Electricity Distribution Company (KEDC), Engr. A. O. Labaran AGM (SO), Enugu Electricity Distribution Company (EEDC) and Engr. M. I. Tijani AGM (SO), Benin Electricity  Distribution Company (BEDC), while Engr. M. D. Ahmed, PM (T) Jos Sub Region and Engr. Tijani Ahmadu PM (T), Jos and Yola Electricity Distribution companies respectively.

    According to the statement, the Terms of Reference, for the Focal Persons are to liaise with DisCos daily as representatives of TCN on all DisCos/TCN interface issues, resolve the issues as soon as they occur.

    The statement further emphasized TCN’s commitment towards improving her wheeling capacity and at the same time maintaining cordial relationship with all the stakeholders in assuring that Nigerians enjoy a more stable electricity supply.

    The meeting was attended by Executive Management, Regional General Managers, Regional Operations Managers and other key staff of TCN.

  • GenCos to NERC: Add stranded 2,000MW to capacity 

    GenCos to NERC: Add stranded 2,000MW to capacity 

    …Commission holds consultations on MYTO frequency

     

    The electricity Generation Companies (GenCos) Monday urged the Nigeria Electricity Regulatory Commission (NERC) to classify the stranded 2,000Mega Watts as part of the available generation capacity in the Nigerian Electricity Supply Industry (NESI).

    The commission, according to its presentation on the review of the Multi-Year Tariff Order (MYTO) methodology by Senior Manager, Market and Rate, Abbah Tera, takes generation capacity as one of the criteria for review of tariff.

    Responding to the presentation, the Executive Secretary, Association of Power Generation Companies (APGC), Mrs. Joy Ogaji, said that that the stranded capacity is not utilized does not mean that it is not produced by the generation companies.

    She noted that there is enough gas but the only constraint its cost, stressing that the GenCos should not suffer owing to the stranded power.

    Her words: “We are not saying we don’t have enough generation. The only constraint that Nigeria is having is the cost of gas. We have over 2,000MW sitting. The over 2,000Mw should be treated, it is available. GenCos should not suffer for it . In line with the review NERC should capture the stranded capacity.”

    Some of the stakeholders urged the commission to privatize the Transmission Company of Nigeria (TCN) since it is obvious that the Federal Government which operates has proven inefficient.

    The Commissioner of Engineering Performance and Monitoring, Prof. Frank Okafor, however explained that the cost of funding the transmission network is too enormous for a private company to raise for the operation of the system.

    “It will be difficult to get investors that will fund the TCN,” he submitted.

    Besides, he said that it might be difficult to secure the right of way for the network since it transverse so many states of the federation.

    According to him, government is borrowing from multilateral financial agencies to expand the grid since the amount of power delivery is not sufficient to raise the required revenue.

    The commission maintained that it has met with the TCN and DisCos in order to deliver the stranded power to consumers.

    Owing to the appreciation of stranded generation, NERC said that Minister of Power, Works and Housing, Babatunde Fashola has directed it to sell power to eligible customers.

    NERC however informed the stakeholders that it has already got the go ahead to enact a regulation that will encourage willing seller and willing buyer of electricity.

    NERC Vice President pointed out that the event was not for a tariff increase but for the commission to get stakeholders’ inputs on (the frequency of the review) how often the review should be carried out.

    The stakeholders were also divided on whether the tariff should be reviewed bi-annually, monthly or yearly.

    NERC carries out a major review tariff review every five years and minor review every six months.

    But speaking representative of Mainstream Energy, Solutions Limited, Musa Abba Bajoga, asked the commission to following the global practice to “do what is done universally.”

    The President Hotel Owners Association of Nigeria, Dr. Ezeh Udeh told the commission to consider a yearly review since hotel rates are not reviewed monthly and that any price that rises in the country hardly falls.

    Network of Electricity Consumers Advocacy of Nigeria (NECAN), Tommy Akingbogun, told the commission not to use its rate to kill investors.

  • Fire razes transformer in Jos- TCN

    Fire razes transformer in Jos- TCN

    The Transmission Company of Nigeria (TCN) yesterday said that a 1x150MVA 330/132/33kV power transformer in its Jos Transmission Substation, caught fire and the inferno completely destroyed the power transformer.

    The fire was eventually put out at about 10pm, according to the General Manager (Public Affairs), TCN, Ndidi Mbah.
    Her statement that broke the news, added that the fire incident started on the secondary side of the transformer’s blue phase bushing, when a conductor snapped and caused oil to gush out of the bushing. This oil caused the fire to intensify engulfing the power transformer.

    TCN engineers in conjunction with the state fire service worked very hard to put out the fire, which unfortunately burnt down the power transformer.

    The statement further noted that “during the incident, TCN engineers were able to successfully isolate the burning 150MVA, 330/132/33kV power transformer from other energized parts of the substation to prevent further escalation. As a result of the quick intervention, the second 1x150MVA, 330/132kV power transformer in the same transmission substation was saved.

    “As at 11pm the same day, TCN engineers successfully restored the 330kV Gombe transmission line and the second 150MVA, 330/132/33kV power transformer supplying Distribution load centers in Jos simultaneously. To ensure there is no impact on the power supply to Jos; TCN has successfully diverted the 30MW normally supplied from Jos Substation; Gombe Substation now supplies 30MW to Bauchi. The incidence did not cause disruption of power supply to Jos and Environs,

    Management is intensifying effort to replace the burnt transformer. Equally investigation is being carried out to determine the immediate and remote cause of the incidence in order to forestall future occurrence.

    TCN regrets inconveniences caused electricity customers especially those in Jos and environs.”