The power sector operates on the tripod of electricity generation, transmission and distribution. The trio make up the value chain that brings electricity to consumers.
The generation companies (GENCOs) are the producers of the vital commodity transmitted to the distribution companies (DISCOs) for distribution to the final consumers.
Each work independently. But, no part of the chain can function in a manner exclusive of the others. Without electricity being generated, nothing would be available to either transmit or distribute to the consumers.
That is why generation not only holds the key in the power equation, it is the goose with the golden egg.
However, for long the roles of the different legs in the delicate tripod have been largely misconstrued, and beclouded by misconceptions and misunderstanding. Trying to change the mindset of an average Nigerian electricity consumer has been such a Herculean task.
Once the consumer switches on electricity and the bulbs refuses to bring light, the immediate conclusion would be that the GENCOs have failed to generate electricity. Wrong!
More often than not, the GENCOs have sufficient generated power available, without the capacity to transmit and distribute this to the final consumers, with the effort being wasted. That is the scenario; that is the basic dilemma the industry faces.
Source: Premium Times