The Ministry of Power has unveiled plans to unbundle the Transmission Company of Nigeria (TCN) in the first quarter of 2024.
The announcement, made by the Minister of Power, Chief Adebayo Adelabu, signifies a crucial step in the government’s efforts to enhance the efficiency and management of the nation’s power transmission grid.
Addressing the media in a statement issued by the Federal Ministry of Power in Abuja, Adelabu outlined the strategic direction the ministry is set to take in the coming months.
The move to separate Transmission services from System and Market operations aims to streamline operations and improve the overall performance of the TCN.
“In the medium to long-term, Nigeria’s power transmission grid will be separated into regional grids to enable effective management,” stated Adelabu, highlighting the ministry’s vision for a more decentralized and responsive power infrastructure.
The unbundling of TCN comes at a time when the power sector is undergoing crucial reforms to address challenges such as technical and commercial losses, lack of liquidity, and the need for improved transmission infrastructure.
The reconstitution of TCN aligns with the government’s broader strategy to revitalize the power sector and ensure a reliable and sustainable energy supply for the nation.
The Minister of Power also emphasized the importance of closing the meter gap, a critical aspect of the ministry’s initiatives. Ongoing efforts, including World Bank programs and the Presidential Metering Initiatives, will be intensified to accelerate progress in this area.
Adelabu highlighted the ministry’s commitment to addressing power theft and vandalism, which have been persistent challenges in the sector.
He called for collective action and informed the National Security Adviser of recorded cases, emphasizing the need for joint efforts to protect power assets.
The announcement follows recent denials by power distribution companies regarding reports of an electricity tariff hike beginning in 2024.
Adelabu clarified that while the ministry is reviewing the implementation process for a cost-reflective tariff, the government will continue to subsidize power supply for vulnerable citizens.
As Nigeria charts its course towards a more efficient and sustainable power sector, the unbundling of TCN stands as a pivotal move, reflecting the government’s commitment to transformative reforms in the energy landscape.