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TCN unbundling may affect the current market, says Sam Amadi
- BPE to begin unbundling process
- To share unbundling strategy proposal soon
The former Chairman, Nigerian Electricity Regulatory Authority (NERC), Sam Amadi has expressed concerns about the Transmission Company of Nigeria (TCN). The NERC began consultations on the unbundling of the TCN in 2020. Speaking in an interview, Amadi said, “if unbundled at such a critical time in the sector, it may complicate the situation of the sector”. ”It is doubtful if the electricity market can attract an investor it requires for financial and technical capacity to fund and manage the sector at this point to the level of expertise”, he added.
Amadi also suggested an alternative to an outright unbundling. ”The proposal in the EPSR Act of unbundling it into ISO and TSP and making them a sort of public trust may be a better plan than an outright sale. For now, the overhaul required is to unbundle it and appoint independent boards as required by NERC regulation”, he said.
The Bureau of Public Enterprises (BPE) is currently considering the strategies for unbundling the TCN and will share its report on the proposed strategies with the National Council on Privatisation (NCP).