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Reps summon TCN MD over $33m monthly payment to GenCo amid irregular power supply


The House of Representatives Committee on Finance has summoned the Managing Director/Chief Executive Officer of the Transmission Company of Nigeria (TCN), Sule Abdulaziz over a monthly payment of $33 million to the Generation Company of Nigeria amid epileptic power supply.

 

The summon was issued on Monday but details of the investigative hearing emerged on Tuesday, where the panel expressed concerns that a whopping sum of $33 million was being paid monthly without commensurate power generation.

 

At Monday’s sitting, the Executive Director, Transmission Service Provider, TCN, Victor Adewunmi; Market Operator, TCN, Edmund Eje; Director, Agreements, Benedict Ogbu; and General Manager, Corporate Planning and Strategy were grilled by the panel and could not give details of how the management arrived at the amount. A development, that a member of the panel, Hon. Taiwo Oluga insisted on the appearance of the TCN Chief Executive to clarify issues.

 

The TCN is currently paying the sum of $33 million to a power Generation Company, Azura Power West Africa Limited whether it supplies power or not.

 

Hon. Oluga, said, “The representative of the chief executive, I will want to put it to you that with this document, you are confusing the House.

 

“If it is your document and we are arguing on it, whether it is megawatts or it is in kilowatts, an agreement has been signed on behalf of Nigerians in megawatts. Now, you are presenting documents to the House in kilowatts/hour.

 

“So, Mr Chairman, I will want to say that maybe these documents should be re-presented while we expect the chief executive to come and explain to Nigerians why $33m will be paid (to Azura) every month, yet we are not getting results – we are not getting power – and that is the root of all the problems in Nigeria as of today.”

 

The lawmaker expressed disappointment that government could go into an agreement on behalf of Nigerians without the power supply, adding that such is not done anywhere in the world.

 

In his remark, the Chairman of the Committee, Hon. James Abiodun Faleke decried that the government, through the Nigerian Bulk Electricity Trading Plc, failed to reach a formal agreement with several power companies but signed a take-or-pay agreement with only Azura

 

Faleke said the lower legislative chamber picked interest in the issue of $33 million for one power company when there are other concessioned power stations with different arrangements.

 

“Egbin power station is the largest with 1,320 megawatts. It is private. We did not sign a take-or-pay (deal) with them. This is where I am going,” he said.


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