House of Reps finance committee displeased with TCN over power generation

In continuation of the investigation of the proposed sale of the Nigeria Independent Power Plant by the Bureau of Public Enterprises, the House of Representatives Committee on Finance has expressed displeasure over the inability of the Transmission Company of Nigeria (TCN), to give accurate accounts of its activities.

The Chairman of the Committee, Honourable James Faleke and members of the committee, while questioning representatives from TCN, said they were shocked to realise that despite the huge amount paid to distribution companies monthly, there was still perennial power outages in the country.

Hon. Faleke said that the purpose of the investigation was to address the alleged breaches of agreement and perennial power failure in the sector.

He noted that the power sector has been unable to meet the power needs of Nigerians which was not right.

“You have to come to our level and to Nigerians who are not electrical engineers. We signed an agreement with Azura to generate 450 megawatts to the national grid, are you telling us they generated more than what you signed for?” Faleke asked.

While pointing out to the gaps on the documents presented to the committee, the chairman also said that the TCN has signed various power agreements with power stations which have not yielded results.

A representative of TCN, Engr Victor Adewumi, while answering questions from the committee, told the committee that there are processes to connect power stations to the national grid.

He said that some of the agreements were hurriedly signed to provide power to Nigerians which are now being rectified.

He said that Azura generating company generates 450 megawatts which varies from time to time.

Similarly, Ogbu Benedict, another TCN representative said that only private power companies pay market participation agreements.

On his part, Engr Edward Ejie, Market Operator TCN, said that private distribution companies engage in load shedding to satisfy customers.

He said that there are about twenty-seven generation companies in Nigeria whose generation depends on load demands.

Following unsatisfied responses, the committee adjourned to Tuesday and said it expects the General Manager of TCN and the accountant to explain why Nigeria pays thirty-three million dollars and not getting power.