The Nigerian Electricity Regulatory Commission (NERC) in their circular dated Tuesday, 30th April, 2024 ordered the Bureau of Public Enterprises (BPE) to implement the unbundling of the Transmission Company of Nigeria (TCN) based on the two separate licenses currently “warehoused” in TCN. These licenses are 1) The Transmission System Provider (TSP), and 2) The Independent System Operator (ISO) Licenses. Several questions have been asked by stakeholders just as many opinions have been shared. This is exciting. For me, it has been a journey of 7 years. Let me take you through it.
My 7-year journey towards the unbundling of TCN
In 2017, I made a presentation at the then West African Power Industry Convention (WAPIC) about the subject matter. I specifically held meetings with the two committees on power in the National Assembly (House of Representatives & Senate). In addition, I held a meeting with the Nigerian Electricity Regulatory Commission (NERC) before jetting back to the UK.
I wrote an article to express my views. Please see the article below:
Not satisfied that a period of three years would go by without implementation, I wrote two articles to trigger the conversation on the subject. Interestingly, the perseverance yielded positive results as consultation commenced on the matter as part of regulatory oversight by NERC in 2020.
Using a carefully drafted survey, I sought the opinion of stakeholders to examine the advantages and disadvantages of this step in the third quarter of 2020, amidst the coronavirus pandemic (COVID-19).
Please see below the articles expressing my views as well as the results of the opinion poll conducted.
Analysis of Opinion Poll
I must mention that on reading the published articles, the then Chairman of NERC invited me into his office and we had a good chat on how to further strengthen the regulatory regime of Service Based Tariffs following the unbundling of TCN.
In a change of strategy by joining other stakeholders in the pursuit of the journey to decentralize the power system, and the attendant signing of Electricity Act 2023 (as amended), it became easier to achieve the intended unbundling of TCN.
The next task is how to implement the policy successfully. All hands must be on deck!
Idowu Oyebanjo, PhD
yesterday, Friday, 3rd of May, 2024
The Nigerian Power System 