The Transmission Company of Nigeria (TCN) has officially petitioned the Nigerian Electricity Regulatory Commission (NERC) for a review of the fault ratio attribution in the Service Level Agreement (SLA) with electricity Distribution Companies (DisCos). At a crucial hearing on Tuesday at the TCN headquarters, the company argued that the current 30:70 fault attribution ratio in favor of DisCos is crippling its operations and must be adjusted to an equal 50:50 split.
The hearing, chaired by NERC Vice Chairman Dr. Musiliu Oseni, saw TCN’s head of legal services, Fatima Mukhtar, making a strong case for the revision. Mukhtar emphasized that the existing framework places an unfair burden on TCN, limiting its ability to effectively maintain and expand Nigeria’s electricity transmission network. She insisted that a 50:50 distribution of responsibility would enhance operational viability and foster a more balanced electricity market.
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However, representatives from the DisCos strongly opposed the proposed changes, arguing that the existing arrangement is necessary to drive efficiency and competitiveness in the electricity sector. They maintained that shifting the fault attribution ratio would disrupt the market dynamics and potentially increase electricity costs for consumers.
In response, Dr. Oseni acknowledged the arguments from both sides and assured stakeholders that NERC would thoroughly review the submissions before making a final decision. He emphasized that the regulatory body remains committed to ensuring a fair and sustainable electricity distribution framework that benefits both service providers and end-users.
As Nigeria continues to grapple with power supply challenges, the outcome of this petition could significantly impact the stability and efficiency of the national grid. All eyes are now on NERC as the industry awaits a decision that could reshape the electricity transmission landscape.
