Mr Usman Mohammed, the Managing Director, Transmission Company of Nigeria (TCN), says robust policy direction and massive investments are catalyst to sustainable power reform in the country.
Mohammed stated this on Saturday in Kaduna at a Policy Dialogue meeting on power with the theme: “Approaches to Sustainable Power Supply in Nigeria”.
He advocated for massive investments in the Nigerian Electricity Supply Industry (NESI), to overhaul and upgrade the transmission networks.
Mohammad added that proactive steps were necessary to provide pragmatic policy direction to address the dearth of assets by the Distribution Companies (DisCos).
According to him, the current expansion projects and other planned investments in the power transmission would be endangered unless commensurable investment is made by the DisCos.
“Let me tell you why we are having problems with these transformers; the DisCos are not investing in their networks and because of that most of the transformers supply customers directly without protection between our equipment and that of the DisCos.
“We are calling on government to provide a policy direction that will lead to the capitalization of the DisCos, we are equally calling on the Nigerian Electricity Regulatory Commission (NERC), to do a regulatory order that will lead to the capitalization of the DisCos,” he said.
Mohammed noted that only 221 of the nation’s 730 interfaces between TCN and DisCos were fully protected, adding that the distribution arm of the industry pose critical challenge to the overall progress in the sector.
The director also identified insecurity as a major obstacle militating against effective progress of power projects in parts of the northern region.
He added that: “The electricity business is connected; If DisCos do not perform, it will affect TCN and equally affect the Generation Companies (GenCos).
“To have a good tariff is good, but if you look at the DisCos, how much of the current tariff are they collecting? I do not believe in the argument that tariff is the problem because capacity is another issue.
“If they are collecting 100 per cent of the current tariff, we will able to move forward”.
Mohammed further said that the TCN had adopted proactive programmes and recruited engineers to enhance its operations, while according priority to solar projects to encourage development of alternative sources of energy in the country.
The forum was organized by a Kaduna based NGO, Arewa Research and Development Project (ARDP). (NAN)
