TCN targets additional N700m revenue from power wheeling charges

22 June 2016, Abuja – The Transmission Company of Nigeria (TCN) has said it aimed at increasing the revenue it earns on electricity wheeling charges by over N700 million within the next six months when it completes some ‘quick-win’ transmission projects in the country.

It also said it would empower the country’s regions and increase their autonomy to undertake transmission responsibilities with some Key Performance Indicators (KPI) through which they can be monitored and held accountable.
A statement from the TCN yesterday in Abuja equally explained that the company was working to change its management practices as well as remove bottlenecks in its payment processes.

 It said these decisions among others were taken at a one-day management retreat to brainstorm and strategise on the way forward for the company.
The retreat, it noted, discussed extensively on the company’s operations and how to ensure that it achieves specific short term goals.

“It critically analysed the company’s strengths, weaknesses and areas to be improved upon as well as opportunities available for improved service delivery, sustained capacity development and stability in the nation’s transmission network,” the statement said.
It added that although the company has the capacity to wheel maximum power generated from the electricity generation companies (Gencos) to distribution companies (Discos), it would continue to work assiduously to further expand its grid capacity.

“Although the grid stability is presently impaired due to lack of adequate generation, TCN would continue to work at averting the collapse of the system.
“Three specific short term projects were identified as quick win projects that should be completed with the least amount of money and yet have maximum impact on the transmission network,” said the statement.
The statement added that: “These ‘quick-win’ projects would be given highest priority attention in order to improve the network and increase return on investment.

“The projects include the installation of a 60MVA, 330/132/33kV power transformer at the Ife transmission substation. Installation would be completed within three months, adding 48MW to the nation’s transmission capacity.
“Repair and installation of 60-No defective 33kv circuit breakers which would be completed within six months and on completion enhance the grid wheeling capacity with about 28,800 megawatt hour (MWH).

“Also, within a period of six months, critical and international 330kv lines are to be maintained to ensure system stability and revenue earnings. These projects when completed will increase TCN wheeling charges by over N700 million,” it said.

On the management change to be initiated in TCN, the statement said: “Another important decision of the meeting was the urgent need to empower the regions, increase their autonomy and set Key Performance Indicators (KPI) through which they can be monitored and held accountable.

“A change in management process would also be instituted to address staff attitude to work, remove bottlenecks in TCNs payment process, identify and close skill gaps through staff training with emphasis on-the-job training.”
Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) has appealed to electricity customers to stop attacking workers of Discos over issues of poor service delivery.

NERC asked consumers to rather explore its complaint and redress mechanism instead of resorting to such unpleasant acts in settling disagreement with officials of the Discos.

It said in a statement that the appeal was predicated on rising incidents of attacks on staff of Discos.
NERC however directed the Discos to provide meters for all maximum demand meter customers within their networks not later than the last quarter of 2016 as agreed during the meeting it had with them on metering.

The commission said it would sanction any defaulting Disco on this order beginning from the fourth quarter of the year.
It explained that maximum demand electricity customers are those connected on the 11kv (high tension wire) and mostly with their dedicated transformers.

It noted that the directive was sequel to the rising complaints from all categories of electricity customers over estimated bills they considered irreconcilable with the available power supply in the networks.
It also frowned at Discos reported refusal to meter their maximum demand customers under the Credit Advance Payment for Metering Initiative (CAPMI) which permits willing electricity customer to pay for meter by advancing money to Discos for meters to be installed within 45 days.

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