Federal Government Plans to Restructure Transmission Company of Nigeria for Boost in Electricity Sector
The Federal Government has announced its intention to restructure the Transmission Company of Nigeria (TCN) to align with the Electricity Act 2023 and address industry demands.
Minister of Power, Adebayo Adelabu, revealed this during the Ministerial Retreat on the Integrated National Electricity Policy and Strategic Implementation Plan in Abuja.
Adelabu outlined the proposed restructuring, suggesting the creation of two entities: the Independent System Operator (ISO) and the Transmission Service Provider (TSP).
This transformation aims to synchronize with the evolving landscape of state electricity markets, responding to calls for decentralization of the national grid into interconnected regional grids.
During the retreat themed ‘’Navigating and Aligning on the Path to Enhanced Electricity Reliability,’’ Adelabu stressed the need to consider whether the government should directly provide electricity nationwide or facilitate its provision through various models, citing examples from China’s centralized approach and the diverse access models in the US.
The minister highlighted key questions such as handling subsidies, cross-subsidies, and aligning the role of the Rural Electrification Agency with emerging state markets.
Adelabu proposed a discount system to compensate passengers for delayed or cancelled flights, emphasizing the importance of holding airlines accountable.
Adelabu expressed the government’s commitment to increase investments in electricity to achieve the projected GDP growth of one trillion dollars by 2030.
He emphasized collaboration with state and local governments to expand electricity coverage across the country.
Discussing challenges in the power sector, the minister addressed issues with contracting, contract management, and adherence to contractual obligations.
Adelabu advocated for a viable method to establish a sustainable capital investment program around gas processing and transportation infrastructure.
Wale Edun, Minister of Finance, highlighted the critical nature of the retreat, considering power as one of President Bola Tinubu’s priority areas.
The discussions aim to find solutions for providing reliable electricity, addressing issues arising from the previous privatization exercise that underwhelmed and underperformed.
Source: Daily Nigerian
