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Tag: TCN

  • NERC slams N47.6m fine on TCN over audit report

    NERC slams N47.6m fine on TCN over audit report

    The Transmission Company of Nigeria (TCN) has been fined N47,670,000 by the Nigerian Electricity Regulatory Commission (NERC) over the company’s failure to submit its 2013 and 2014 audited financial statements.

    According to a document with reference number NERC/Directive/160 signed by the acting Chairman, Dr. Anthony Akah, and General Manager, Legal, Licensing and Enforcement, Mrs Olufunke Dinneh, TCN has up to two weeks to pay the fine beginning from December 2  when the Directive was signed. The fine attracts five per cent interest daily after the due date.

    The commission said in a statement that TCN for failure to submit audited financial report has violated “Section 63 (1) of the Electric Power Sector Reform Act, 2005 that stipulates“a licensee shall comply with the provisions of its license, regulations, codes and other requirements issued by NERC from time to time.”

    Other infractions as contained in Directive 160 include Condition 4 and 5 of TCN’s Transmission Licence. Condition 4 stipulates that “Licensee shall furnish to the Commission information, in such a manner and at such times as the Commission may require” at the time and format as may be required by the Commission to perform its regulatory functions.

    Condition 5 of TCN’s licence further directs it to submit audited financial reports to the Commission as detailed in its Transmission Licence.

  • Fed Govt mulls TCN’s assets sale

    The Federal Government may consider selling the multi-billion dollar assets of the Transmission Company of Nigeria (TCN) once the appropriate investment propositions that would support the action are in place.
    The Minister of Power, Works and Housing, Mr. Babatunde Fashola, gave this hint, during a technical session of the just-concluded power conference in Eko Hotel, Victoria Island, Lagos.
    He argued that aggregation or collection of investments facts or opinions is vital to the sale of the assets transmission company.
    Fashola said: “The debate about selling the assets of the National Transmission Company should be rational and not emotional. There is need to find out whether TCN has achieved efficient service delivery or not? Has the three-year transition deadline given TCN to improve its operation matured or not? I think our energy, as a nation, must be focused on those areas, if we want to show to the world that privatisation of TCN’s assets is the way to go.
    “It is not the practice of a nation to sell everything it has. What I have learnt is that there are no regulations that specify what we must keep as assets as a nation. In whatever we do, we are trying to provide some levels of control. By this, we are trying to be security conscious so that we are not vulnerable to the entire electricity market.”
    Fashola said countries, such as China, India, South Africa, Brazil and Mexico, were yet to do what Nigeria did in the selling assets in key value chains, such as the generation and distribution segments of the electricity sector.
    He said there was no power company in the world that could achieve 100 per cent collections in tariff, adding that the only thing an energy firm could do was to reduce its losses to the barest minimum level.
    According to him, debts in the form of electricity owed by consumers are a continuum, because people consume power daily.
    He advised consumers to pay their bills on time to enable the power distribution companies (DisCos) meet their obligations to them.
    The DisCos,Fashola said, get their money from the power they distribute to consumers and further pay the power generation companies (GenCos) for supplying them electricity.
    The issue of selling the nation’s transmission assets came up in 2014 during the administration of former President Goodluck Jonathan.
    Two weeks ago, the issue resurfaced as stakeholders in the sector, advised President Muhammad Buhari, to consider selling the assets of TCN to generate money to finance public expenditures.

  • TCN evacuates 3,403Mw to DisCos

    TCN evacuates 3,403Mw to DisCos

    The Nigeria Electricity System Operator (SO) of the Transmission Company of Nigeria (TCN), yesterday said it sent out 3,403 Megawatts (MW) of electricity to the 11 Distribution Companies (DisCos) nationwide.

    In its daily summary of power sector performance, the SO said that at 06:00hours on Wednesday, the generation companies (GenCos) produced 82,461.95MWH, which is equivalent of 3,435.91Mw from the gas and hydro power plants.

    The Nigerian Electricity Supply Industry (NESI) however said the gas shortage culminated in the loss of 3,105Mw, adding that its gas constraint was 3,105Mw, while line constraint was 495.4Mw, and frequency constraint was 118.4MW.

    The NESI said there was no water management constraint, but pointed out that the power sector loss was equivalent of N1.785billion

    It said : “On September 12 2016, average power sent out was 3403MWh/hour (down by 20MWh/h).  The reported gas constraint was 3105MW. The reported line constraint was 495.4MW according to TCN. The reported high frequency constraint was 118.4 MW. The water management constraint was  0MW. The power sector lost the estimated equivalent of N1.785billion on September 12 2016 due to constraints.”

  • ‘TCN lacks capacity to evacuate power’

    ‘TCN lacks capacity to evacuate power’

    Following the accusation that the electricity distribution companies (DisCos) are  rejecting their load allocations, a power industry stakeholder yesterday said the Transmission Company of Nigeria (TCN) that raised the alarm lacks the capacity to send out the 5,500megawatts (Mw) it claimed.

    The industry source who countered the position of the TCN said a transmission company worth its onions should have double of existing generation capacity.

    He said the TCN has no capacity to transmit double of what is presently generated in Nigeria.

    According to the source, since the GenCos  now generate about 3,484Mw, the TCN should have 6,968Mw wheeling capacity to be sure of adequate capacity for evacuating all the power produced in the country.

  • TCN requires $7.5b for five-year expansion plan

    To meet the Federal Government’s 10,000mw minimum electricity generation target, the Transmission Company of Nigeria (TCN) requires $7.5billion for its five-year expansion plan.

    The money will facilitate the completion of 56 projects that will lead to the cumulative generation of over 11,000mw by 2019.

    TCN Managing Director Dr. Atiku Abubakar yesterday accused some unnamed power distribution companies of rejecting load allocation.

    He said besides funding through appropriation by the Federal Government, which solely owns the TCN, the organisation is also funded through “agencies, such as AfDB, AFD, World Bank, and special funds from Eurobond, China Exim Bank and JICA.”

    He said there is extended funding requirements from these agencies in form of concessionary loans and grants is out at $3.4biillion,

    The Federal Government is expected to bring about $1.5billiion for the five-year period. Investors are expected to contribute $2. 6billion.

    “This is a total estimate requirement of $7.5b for the five-year expansion plan,” Abubakar said.

    The TCN boss explained that there is enough capacity to transfer power to distribution companies but some DISCOs are not accepting loads.

    “I will say yes, it is still happening. I don’t want to mention the distribution companies that are guilty but they know themselves. Most of them are load shedding 11Kv feeder for two, three hours simply because they cannot pay to the market operator or to the system the invoice that is given to them or what they consume. So they use that method to deny customers power.

    “ But I want to make it clear that we know because the System Operator monitors on 24 hours basis.”

    Abubakar added: “Let me assure the DISCos and GENCOs and the generality of Nigerians that TCN is determined to improve the services so that it does not appear and it is not the weakest link in the power sector value chain.

    “At this moment, the weakest link is truly identified: some distribution companies rejecting customers’ loads, thereby throwing them in darkness, resulting in lowering of generation, although we have the capacity to generate more.”

    He said the World Bank would withdraw its loan to the TCN owing to the exit of the management contractors, Manitoba Hydro International (MHI).

    TCN, which has never been audited externally since its inception in 2006, is already being audited by international auditing firm PriceWaterCooper, Abubakar said.

    He noted that the company, which requested for N50billion in its 2016 budget, got approval for N30billion from which only N9 billion had been received.

    He noted that the Federal Government paid $34million to the MHI for managing the TCN, adding that following the company’s exit, Nigeria would save $23million for three years.

    Abubakar said when he took over on August 1, more than 30 equipment, transformer and transmission lines were out of service, but his management had intervened to reduce the number to less than 15.

     

  • TCN cuts line constraint to 70Mw

    TCN cuts line constraint to 70Mw

    •Supply hits 3003Mw

    The Nigeria Electricity Supply Industry (NESI) said it  reduced technical losses experienced on July 26 to 70MW.

    According to the firm on its website, the sector has been able to maintain 0MW management water constraint in the past one month.

    The improvement in power generation, however, culminated in the supply of 3,003MW to the 11 electricity distribution companies (DisCos).

    The Nigerian System Operator (NSO) of the Transition Company of Nigeria (TCN), which allocates loads,  sent out 2928MW to the DisCos, resulting in 75MW increase in power supply.

    But the gas constraint of 4,302MW, remained unchanged on the day under review.

    Following the data, estimated equivalent losses that the NESI recorded on June 26 was worth N2,125, 000, 000.

    It said: “On July, 26 2016, average power sent out was 3003MWh/hour (up by 75 MWh/h). The reported gas constraint was 4302MW. The reported line constraint was 70MW. The water management constraint was 0MW. The power sector lost the estimated equivalent of N2,125,000,000 on July 26, 2016 due to constraints.”

    NESI the previous day noted that “on July 25, 2016, average power sent out was 2928MWh/hour (up by 26 MWh/h). The reported gas constraint was 4302MW.

    ‘’The reported constraint was 224MW. The water management constraint was 0MW. The power sector lost the estimated equivalent of N2,172,000,000 on July 25.

  • How TCN can be more effective, by workers

    How TCN can be more effective, by workers

    Electricity workers have listed two options for making the Transmission Company of Nigeria (TCN) more effective.

    In the last four years, TCN has been under Manitoba Hydro International (MHI), a  foreign management company. When its contract  expired, it was extended by one year by the government, last year.

    The Senior Staff Association of Electricity and Allied Companies (SSAEAC) suggested a re-composition of the MHI counterpart management team and injection of new technocrats from the sector in areas that require strengthening.

    SSAEAC’s President-General  Mr Chris Okonkwo also suggested that MHI and Nigerian counterparts should form a new structure.

    In the third option, the union suggested that MHI functions as advisers to the Nigerian management team.

    He also called on the government to revise the cost component of MHI contract and ensure an upward review of the remuneration of Nigerian management team.

    It would be recalled that in a memo it forwarded to the Presidency recently, SSAEAC  called for outright transfer of management of TCN to  a reconstituted Nigerian management team.

    Its position was premised on alleged poor performance of the foreign management contractor; perception of wastages of resources due to non-performance; lack of clear Key Performance Indicators and lack of appreciable change in operational challenges from commencement of contract (system collapse, poor funding, process bottlenecks, among others)

    Okonkwo said the union was giving the additional options in view of the possible misrepresentation of the first and preferred position of SSAEAC, which is now offering more options to widen government’ choice in taking  informed  decision on TCN.

    Okonkwo  said: “One option is to have TCN HQ structure collapsed to have one MD/CEO (no MD TSP, MD ISO) with the following structure: MD/CEO, ED (Tech. Service), ED (Market Operations), ED (System Operations), ED (Human Resources) and ED (Finance and Accounts) –General Managers and AGMs will fall under the EDs except for those to report to the MD/CEO.

    “The structure of TCN with MD/CEO TCN, MD TSP and MD ISO may also be used.However, it could be suspended to achieve some measure of targets by compressing it as suggested above, without loss of positions,’’ he said.

    He  listed  the problems impeding the growth of TCN to include poor budgetary funding for completion of a ring grid by constructing/completing critical lines to stem system fragility; poor tariff for wheeling of electricity; NERC’s  indisposition  to good tariff for TCN using same considerations for GenCos and DisCos; One-sided orders against TCN in favour of other stakeholders by NERC for instance; TCN surcharge for low energy delivery without corresponding sanction for GenCos for low generation and DisCos for rejecting loads and  surcharge of higher Transmission Loss Factor (TLF) without corresponding reward for TLF below benchmark of 8.05 per cent.

  • Probe TCN, group urges Fed Govt

    Probe TCN, group urges Fed Govt

    The Senior Staff Association of Electricity and Allied Companies (SSAEAC) has urged the Federal Government to probe the poor management of the Transmission Company of Nigeria (TCN) under Manitoba Hydro International Nigeria Limited (MHINL).

    SSAEAC President Chris Okonkwo said there has not been any improvement in power since MHINL took charge four years ago, stating that corruption and politicisation of the power sector have compounded the operational processes of TCN.

    “A look at the calibre and number of staff of MHINL evokes crass disdain for the quality of Nigerian professionals in TCN, who are subjected to  men and women who are mediocre in the core business of TCN and who use Nigerians to do the little that is recorded as success of the contract, with outrageously high fees paid to the MHINL for little or no work done,” he said.

    Describing the contract as political, Okonkwo alleged that from inception till date, Manitoba exploited the weakness in the system.

    “They (Manitoba) are morally and ethically bankrupt and should be investigated if the current war against corruption will have a meaning,” he alleged.

    He warned the Federal Government against another extension being pushed for by MHINL, saying it would lead to industrial action by workers.

    He said it was necessary for the government to look inwards by sourcing local contractors and professionals in the sector.

    Okonkwo also lamented that most of the firms who made a bid for stakes in the sector were insincere about their ability to inject funds into the sector.

    “When will the government open its eyes to see that the investors today are not real investors?” he asked.

    He argued that the investors, who should have brought in investment and engaged technical partners, turned out to be hiring them temporarily for the bidding purpose. This, he said, was why the so-called investors are left to do a business they knew nothing about.

  • TCN chief sure of improved power supply

    TCN chief sure of improved power supply

    Transmission Company of Nigeria (TCN) Managing Director Mr. Mack Kast is sure that power supply will soon improve.

    He spoke at the launch of a book titled: “Succeeding in Communication” written by Mr. Clement Ezeolisah, an official of TCN in Abuja.

    Kast acknowledged the poor power supply arising from rampant vandalism of gas pipelines, saying: “Be assured that all stakeholders are working tirelessly to reverse the current situation so that we can return to winning ways again with uninterrupted power supply.”

    He commended the author of the book, describing him as diligent and development-oriented.

    The Chairman of Senate Committee on Finance, Senator John Owan Enoh who was the Guest of Honour, also praised the author for writing the book, noting that the book will help people improve their communication skills.

    The senator also called on leaders to do all that is possible to restore reading culture among the populace and encouraged everyone to adjust their life-styles in order to live better and keep in check the rampaging life-style diseases like diabetes.

    According to the author, Clement Ezeolisah, motivation for writing the book came from the desire to bridge the existing gaps in communication activities so that people would be more disposed to communicating more effectively and efficiently.

    The book reviewer, Mrs. Ndidi Mbah, described the seven chapter-book as the ‘little but great book which brings together in a simple but concise manner the art of effective communication’,  Mr.

    ‘Succeeding in Communication’ attempts to deepen the understanding and achievement of the communication process. It analyses the elements of the communication system, the various traditional and emerging digital modes and suggests ways for proper and effective utilisation of these modes to achieve success in the communication process.

    Former group managing director of Leadership Newspaper and publisher of The Interview magazine, Azubuike Ishiekwene, wrote the Foreword to the book.

  • Probe TCN management, union urges govt

    Probe TCN management, union urges govt

    The Senior Staff Association of Electricity and Allied Companies (SSAEAC), has asked the Federal Government to probe the poor management and under-performance of the Transmission Company of Nigeria (TCN) under Manitoba Hydro International Nigeria Limited (MHINL).

    SSAEAC President,  Chris Okonkwo, who spoke at a briefing in Lagos, said there has not been any significant improvement in power, since MHINL took charge four years ago, stating that corruption and politicisation of the power sector  have compounded the operational processes of TCN.

    “A look at the calibre and number of staff of MHINL evokes crass disdain for the quality of Nigerian professionals in TCN, who are subjected under men and women who are mediocres in the core business of TCN, and who use the Nigerians to do the little that is recorded as success of the contract, with outrageously high fees paid to the MHINL for little or no work done,” he said.

    Describing the contract as political, Okonkwo alleged that from inception till date, Manitoba exploited the weakness in the system.

    “They (Manitoba) are morally and ethically bankrupt and should be investigated if the current war against corruption will have a meaning,” he alleged.

    He warned the Federal Government against another extension being pushed for by MHINL, saying it will lead to industrial action from workers. He said it was neccessary for the government to look inwards by sourcing local contractors and professionals in the sector.

    Okonkwo also lamented that most of the firms who bid for stakes in the sector were insincere about their ability to inject funds into the sector. “When will government open its eyes to see that the investors today are not real investors?” he asked.

    He argued that the investors, who should have brought in investment and engaged technical partners, turned out to be hiring them temporarily for the bidding purpose. This, he said, was why the so-called investors are left to do a business they knew nothing about.