By Michael Eboh

The Transmission Company of Nigeria, TCN has fixed a charge of about N225 million for power firms seeking to modify their connection to its transmission network across the country and also for firms seeking to connect to the network for the first time.

The TCN in a circular released last week and obtained by Vanguard, titled, ‘Transmission Procedure No. 1: Application Process for New and Modified Connections,” signed by Mr. Mohammad Shahid, Executive Director, Transmission Service Provider (TSP),TCN, said the amount comprises costs for conducting evacuation study, conducting meetings to discuss the connection agreement and for the connecting equipment.

For evacuation study, the cost is varied for different voltage levels, ranging from N10 million each for 330Kv and 132Kv respectively for generator, while in the area of load, N7 million is charged for 330Kv, N6 million for 132Kv and N5 million for 33Kv.

For conducting connection negotiation meetings, the TCN has fixed a flat rate of N10 million per applicant, which is designed to cater for transportation, meeting space and incidental expenses.

In the aspect of cost for connecting equipment, the TCN is charging N205 million for a number of connecting equipment and transformer configuration. The cost, according to the TCN document, is for all electrochemical and civil works for the equipment used to connect the user to the TCN grid.

The TCN, however, stated that the cost for connecting equipment does not include the power transformer, all 132Kv equipment, grounding reactor, among others on the 33kv transformer incomer.

In addition, the TCN declared that, “The prices indicated are indicative only. They are subject to changes and modifications as the reality on ground during procurement dictates.”

According to the TCN, the costs, as well as other procedures are required under the Grid Code to enable new and modified to the TCN network and to set out cost recovery issues including termination fees.

The TCN said the objective of the procedure is to, “ensure that the connection process is clear, timely and that all financial obligations are clear, and that the connection process facilitates competition, reflects costs and takes into account the development of the network.”

The document said the TCN is responsible for operating the Transmission Grid system and allowing equal and fair access to the network by making Grid Connection Agreement with all users.

This process, the circular states, “involves the issuing of the National Power System Master Plan and the Transmission Plan to interested parties, advising users on locational opportunities and technical connection matters.”

The circular empowers the Executive Director, TSP, to review, revise and reissue the transmission procedure, while the General Manager of Regulatory Affairs of the TCN is responsible for the operation of the procedure.

The procedure requires that the new user makes an application for connection specifying the actual location of its proposed substation, specifying the point it intends to connect to the transmission system, among others, as pertains to the Grid Code.

Continuing, the circular states, “TSP will perform system studies to verify the validity of the proposed connection; make a firm offer as soon as reasonably possible, but in any case, within four months of a user supplying all necessary data and paying the relevant fee.”