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Published On: Thu, Mar 28th, 2019

TCN, DisCos, MAN differ on Review of TEM Order 330/132 Customers

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By Etuka Sunday

The Transmission Company of Nigeria (TCN), electricity Distribution Companies (DisCos) under the auspices of the Association of Nigeria Electricity Distributors (ANED) and Manufacturers Association of Nigeria (MAN) yesterday differ on whether or not it is time to review the Transition Electricity Market (TEM) Order (330/132 Customers).
At the Public Hearing organised by the Nigerian Electricity Regulatory Commission (NERC) in Abuja, on the TCN’s request for the nullification of the Transition Electricity Market (TEM) Order (330/132 Customers) that was presented at the commission, the operators were battling for their varying interests.
While, TCN was asking the commission to render the order null and void, DiaCos said that declaring the order null and void would widen the shortfall in the Nigerian Electricity Supply Industry (NESI) that has already hit 1.4trillion.
DisCos also held that the commission has no power to entertain the review, which they described as the responsibility of the National Assembly and court of competent jurisdiction.
However, the Generation Companies (Gencos) and Manufacturers Association of Nigeria (MAN), insisted that a change of the order has become expedient.
Speaking at the Public Hearing in Abuja, the TCN Managing Director, Mr. Usman Gur Mohammed submitted to the stakeholders at the meeting that the nullification of the order has become necessary to empower the TCN to collect revenue on the vending of power from the 330/132 KV line which they DisCos have dedicated to the serviced their premium customers at the expense of the TCN.
The Regulatory Manager of ANED, Prince Adetunji Adeyeye, said not only does the commission lack the power to grant the prayer of the TCN, it is coming on a flawed platform to NERC no matter how significant the point of TCN is .
He said that “TEM itself is not something that NERC can declare null and void because it doesn’t come under the review processes under section 50 which declares what you can actually review. The only person that can declare that null and void prayer is the court or and amendment by the National Assembly.”
Besides, he noted that the appropriateness of the issues that the TCN raised about the 339/132 customers were already covered by the contractual agreement that the TCN is a party to.
As a company, The Transcorp Power Generation Company, expressed support for the voiding of the order,
The company noted that “we support the TCN. There should be acfurther look at the provision. We support TCN. And we are confident that the sector will be proud of the outcome.”
The firm urged the NERC to use the opportunity to do a wholistic review of the order that will define capacity with which GenCos will be paid.
According to him, should the commission amend the provision, it will have a considerable impact on the eligible customers.
The President, Manufacturers Association of Nigeria (MAN), Engr. Mansur Ahmed, countered the agreement of the DisCos, stressing that the country must change the law in order to make progress.
He expressed the support of his association for the voiding of the order, adding that the rule should be continuously monitored and the country should eliminate all the distortions that retard its economy.
He said “we support the presentation by TCN because we see in it the opportunity to bring self improvement and availability in the power we are getting. When this presentation’s recommendations are accepted, there is not going to less power for DisCos to distribute. The total power that is generated and distributed will improve and bring improvement to our economy as a whole.”

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