The Association of Nigerian Electricity Distributors (ANED) has blamed the liquidity challenges being experienced by Distribution Companies (DisCos) on the Transmission Company of Nigeria’s (TCN) infrastructure and technical limitations.
Describing the TCN as the weakest link in the power sector value chain, the association claimed DisCos are currently experiencing a monthly loss in excess of N1 billion, due to limited transmission capacities in various parts of the country.
It added that the major challenge being faced by the association is the TCN’s inability to meet its financial obligations, relative to this shortfall, thereby compromising the DisCos’ ability to meet their obligations to the market operator.
In a statement, yesterday, in Abuja, Executive Director, Research and Advocacy, Sunday Olurotimi Oduntan, said a fundamental premise of the privatisation of the PHCN successor companies was that the TCN would be operated efficiently, in consistence with private sector attributes of productivity and managerial efficiency.
He noted that such attributes were expected to result in increased wheeling capacity that would complement increased power generation and, ultimately, increased supply to consumers.
He said: “While there is no doubt that the other stakeholders in the power value chain would applaud the TCN’s ascendancy from being the weakest link in the supply of power to consumers, it is critical to point out that unless TCN is properly funded, its project management capacity upgraded, trained and competent personnel enlisted, it is fair to question the veracity of the constant assurances of possible foreign/donor investment in TCN.”