Expect Improved Electricity as FG Names Two New Power Companies From TCN, May Break up DisCos
- The Minister of Power, Adebayo Adelabu, has said that the Transmission Company of Nigeria (TCN) will become two separate entities
- He said that the Federal Government would restructure it into Power System Operator (ISO) and the Transmission Service Provider (TCP)
- Adelabu also noted that there is a need to break up electricity distribution firms for adequate supervision
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The Nigerian government has revealed plans to unbundle the Transmission Company of Nigeria (TCN) into two different entities.
The Federal Government admitted that TCN has been identified as the weakest link in the Nigerian Electricity Supply Industry (NESI).
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Adelabu names two new entities from TCN
TCN manages the national grid and delivers bulk electricity to distribution firms and eligible customers.
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The Minister of Power, Adebayo Adelabu, revealed this at a minister’s retreat and said that TCN would be restructured to become the independent power system operator (ISO) and the transmission service provider (TCP).
He explained that the restructuring must synergize with the evolving environment of state electricity markets, addressing demands for the decentralization of the national grid, which is connected by a new higher-voltage national super-grid.
Vanguard reports that Adelabu noted that the reform aims to improve power supply, asking stakeholders and operators to review efforts to actualize the policy.
The minister regretted the grid collapse on Monday, November 10, 2023, stating that it only occurred for a few hours.
FG may unbundle DisCos for effective supervision
Adelabu proposed unbundling distribution companies (DisCos) in different states at a separate event to ensure more robust supervision.
Daily Trust reports that the minister said this during a meeting with the Abia State Governor, Alex Otti, who asked the minister to expedite action in state involvement in the electricity industry.
Adelabu said:
“Financial collaboration modalities between the federal and state governments will be explored, possibly involving a swap of federal government stakes in DISCOs with states’ stakes in the Niger Delta Power Holding Company (NDPHC).”
Power Minister Bayo Adelabu promises to meter all households and fix national grid challenges
Legit.ng reported that The honourable Minister of Power, Adebayo Adelabu, has promised to meter all households in Nigeria and fix the challenges affecting the national grid.
Adelabu stated this during his inaugural address after President Bola Ahmed Tinubu swore him in on Monday, August 21.
In the statement shared on his Twitter page @BayoAdelabu, he disclosed that his vision for the Ministry of Power is rooted in leveraging the Nigerian Electricity Act of 2023.
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Source: Legit.ng
