The PricewaterhouseCoopers is to audit the accounts of the Transmission Company of Nigeria from 2006 to 2014
| By Anayo Ezugwu | Sep 12, 2016 @ 01:00 GMT |
FOR the first time in the last 10 years, the Transmission Company of Nigeria, TCN, is ready to open its books to external auditors. TCN, which is now being managed by the federal government, admitted that it had not opened its operations for external audits in the last 10 years.
The company has now engaged PricewaterhouseCooper, PwC, Nigeria to undertake an external audit of its accounts. Sonny Iroche, executive director in charge of finance and accounts, TCN, disclosed recently that the audit would span between 2006 and 2014.
He, however, noted that the TCN had been doing internal audits but now needs to do external audit. Iroche said the audit would be followed with the migration of its accounting system to conform to the international accounting standards. He did not specifically state if the audit would include the activities of TCN during its management contract under Canadian power firm, Manitoba Hydro International, MHI.
However, given the period the audit would cover, it is obvious that the activities of MHI would also be audited. The government reportedly made financial commitments worth $34 million to MHI.
Similarly, Abubakar Tambuwal Atiku, acting managing director, TCN, said that since the government took over the management from MHI, the Nigerian managers have recorded some commendable milestones. “TCN is continuously bringing back to service unavailable equipment to boost and strengthen the grid and make it more reliable.
“It is on record that as at 31st July, 2016, we have a total of 20 unavailable equipment, comprising transformers, reactors and transmission lines. As at date, we have successfully restored the following critical equipment hitherto neglected before we took over on 1st August, 2016, thus bringing down the number of unavailable equipment.
“The equipment restored to service from 1st August, 2016, include: 75MX reactor restored back to service at Lokoja, Kogi State, installation of 60MVA transformer at Okene transmission station after three months of outage and second 330kV line from Shiroro to Katampe which has been restored to service.
“60MVA transformer restored back to service at Owerri transmission station after one month of outage, newly installed 60MVA transformer at Okene transmission station commissioned to service and an additional 2x60MVA transformers at Akangba transmission station.”
According to Atiku, the transmission system has so far remained relatively stable with zero system collapse. He added that the TCN was working to avoid system disturbances that could lead to collapses.
Also, Mohammed Gumel, executive director, System Operations, TCN, disclosed that the company has entered into an agreement with Egbin, Olorunsogo and Delta power generation companies to provide the network with spinning reserves in cases of system collapse. He said the power stations would act as the network’s balancing factors in this regard.
Stakeholders in the power sector had been asking the federal government to properly concession the TCN to expand its capacity. According to them, the federal government should order for immediate auditing of TCN accounts and approve the construction of new 17,000 megawatts of transmission lines so that it could transmit more power generated by generation companies.
Investigations by Realnews has shown that since 2013 the power sector has N300 billion funding gap. And one of the major factors that led to the funding gap was inappropriate tariff in the industry for many years.
TCN was incorporated in November 2005. TCN emerged from the defunct National Electric Power Authority, NEPA, as a product of the merger of the Transmission and Operations sectors on April 1, 2004. Being one of the 18 unbundled Business Units under the Power Holding Company of Nigeria, PHCN, the company was issued a transmission License on July 1, 2006. TCN licensed activities include electricity transmission, system operation and electricity trading which is ring fenced.