Sunday, March 7, 2021

TCN faults N1.5tn intervention in power sector

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The Transmission Company of Nigeria said the about N1.5tn intervention of the Federal Government in the power sector is not reflecting in the current performance of the industry.

According to TCN, the intervention was done to boost the performance of operators in the power value chain but this had yet to improve the outputs of players in the space.

The General Manager, Market Operations, TCN, Edmund Eje, explained that one of the major reasons for this was the non-compliance in efficient payment of invoices issued distribution companies as this had created a huge market gap.

The TCN official stated that one of the major problems confronting the sector was that the power distribution companies were sold to investors who lacked enough capital.

He said most of those who officially took over the Discos in 2013 borrowed funds from banks and were busy trying to repay the loans instead of strengthening their networks.