FG Finalizes Arrangements to Unbundle TCN
The Federal Government has finalized arrangements to unbundle the Transmission Company of Nigeria (TCN) into two entities.
The Power Minister, Adebayo Adelabu, announced that the company would undergo unbundling into transmission services and market operations in the first quarter of this year.
The minister explained that the long-term plan is to divide the national electricity grid into the regional grid for effective management.
Adelabu says the federal government also plans to intervene in the distribution of infrastructure and the supply of transformers to communities without any financial commitment.
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In his presentation, the Chairman, of the Nigerian Electricity Regulatory Commission, NERC, Engr. Sanusi Garba disclosed that without a cost-reflective tariff, the government would have to pay about N1.6 trillion to subsidize the electricity tariff shortfall in 2024.
He explained that inflation and the Federal Government’s decision to unify the official foreign exchange market have pushed cost reflective tariff to N124/kWh from the subsidized N73/kWh charged to Band-A customers.
