The 56th power dialogue was indeed an intuitive discussion. It centred on the dynamics of an independent system operator, understanding the objectives of an efficient and unbundled TCN to the power sector, and identifying if there would be any issue or scars should the TCN be unbundled.
Like we all know, the Nigerian power sector has evolved significantly since the power sector reform act was passed in 2005. It was unbundled from NEPA (a single entity) to multiple participants such as DisCos, GenCos, NERC, REA, and TCN.
While other units are managed primarily by private investors, the TCN remains managed by the government, and so deliberations are being on whether the government should entirely relegate the TCN to private bodies and what potential bottlenecks this act would cause.
The director, energy bureau of public enterprise- Yunana Jackdell Malo, stated at the discourse that the government at this present time has not taken any decision regarding unbundling TCN; they are still weighing options and looking into all possibilities. He further explained that to obtain a stable power market, the entire value chain has to communicate clear goals and work as one entity.
According to one of the speakers- Harold Wiens, the Nigerian government has chosen an act that has worked in other countries, but the difference is that Nigeria lacks the distinct infrastructure necessary to have a good electricity market. The prime one, in his opinion, is the metering challenge among other infrastructural deficits.
Furthermore, it was also expressed in the dialogue that to unbundle TCN, much work is needed to be done at the sector’s dynamics. Although TCN takes about 5 per cent of the value chain, it is not to be neglected as it stands as the intersection between electricity generation and supply.