The Nigerian Electricity Regulatory Commission (NERC) has unbundled the Transmission Company of Nigeria (TCN) and established the Nigerian Independent System Operator Limited (NISO) with effect from May 1, 2024.
NERC in an order issued and signed by its Chairman, Sanusi Garba and Vice Chairman, Musiliu Oseni, gives the Bureau for Private Enterprises (BPE) till May 31, 2024 to incorporate NISO as a private company limited by shares under the Companies and Allied Matters Act to carry out the market and system operation functions stipulated in the new Electricity Act (EA) and the terms and conditions of the system operation licence issued to TCN.
Recall that TCN as a successor company was issued two separate licenses to operate as the transmission service provider and system operator for the national grid system by the Commission under repealed Electric Power Sector Reform Act 2005.
The repealed Electric Power Sector Reform Act 2005 (“EPSRA” or the “Repealed Act”) envisaged that TCN would transfer the function of system operation for the national grid to an Independent System Operator (ISO), now named NISO, though still subject to the availability of the name at Corporate Affairs Commission.
Under the new structure, NISO shall henceforth carry out all market and system operation-related contractual rights and obligations novated to it by the TCN; negotiate and enter into contract for the procurement of ancillary services with independent power producers, successo generation licensees, etc and generally carry out market and system operations functions as specified under the EA and the terms of its license in the interest of market participants and system users;
NISO shall carry out all market and system operation-related contractual rights and obligations novated to it by the Transmission Company of Nigeria.
NISO’s initial shareholders, NERC stated, are Bureau of Public Enterprises (BPE) and Ministry of Finance Incorporated (MOFI)
ALSO READS:
- NNPC Ltd/Chevron JV Eye 165,000 bpd Production Target by Dec 2024
- China to establish mini-grid simulation, standardization centre in Nigeria
- Joint entry from UK based Olajide Otitoju, Meihong Wang, Eni Oko wins $100,000 Nigeria Prize for Science 2024
- NNPCL, Chinese firm to co-fund Gwagwalada IPP
- FG grants UTM Offshore license to construct first Floating LNG
The final shareholding structure of NISO shall be determined after further consultations with government, market participants and industry stakeholders.
The NERC order directed TCN to conclude the identification and mapping of the assets and liabilities for the system/market operation portion of its business and forward the same to the Commission and the BPE no later than 30 June 2024.
