Energy Briefs
–
THE Transmission Company of Nigeria, TCN, is to spend additional N1.36 trillion within the next four years to upgrade Nigeria’s electricity transmission network, the Nigerian Electricity Regulatory Commission, NERC, has disclosed.
The NERC approved the money as capital expenditure for the years 2016 to 2020, and N287 billion as operational expenses for TCN within the same period. It said the approval was part of the company’s projection in the Multi Year Tariff Order, MYTO, 2015.
The regulatory agency explained that this would aide in its upgrade plan for the network from 5,500 megawatts, MW, in 2016 to more than 11,000MW in 2020 and on a continuous basis. Anthony Akah, acting chairman of NERC, disclosed this in the presentation he made to sector operators at the recent meeting of the National Council on Power, NACOP, in Kaduna.
According to him, the TCN was facing severe funding challenge and needed a cost reflective tariff in the MYTO to enable it execute transmission projects it has planned to upgrade the network. Akah said the NERC recognised the imperative for huge investment in Nigeria’s transmission network, hence, its approval of the capital expenditure for TCN in the MYTO.
The NERC, however, insisted that the TCN must revise its capital expenditure programmes in order of priority to the country’s power sector, adding that it needs to consult with its various customers on expected service improvements it wants to attain.
The commission also said that an anticipated arrangement of promissory note was currently being discussed with the Nigerian Bulk Electricity Trading Plc, NBET, and the electricity distribution companies, Discos, to ensure 100 per cent payment of TCN’s invoices by the Discos to boost remittances to the company.
He said the TCN was currently challenged by poor funding from poor revenue remittances by the Discos. He also said the TCN’s inability to exert necessary grid and market discipline in the electricity sector would impact on the predictability of incremental and stable power supply.
— Aug 1, 2016 @ 01:00 GMT
|
Tags:
