NERC Unbundles TCN: New System Operator Assumes Transmission Function
In a significant stride toward revamping Nigeria’s electricity sector, the Nigerian Electricity Regulatory Commission (NERC) has executed the unbundling of the Transmission Company of Nigeria (TCN), ushering in the Nigerian Independent System Operator of Nigeria Limited (NISO).
This pivotal move stems from the federal government’s pronouncement in December 2023 outlining the division of TCN into two distinct entities, a response to the identified shortcomings within the Nigerian Electricity Supply Industry (NESI).
As outlined in a circular dated April 30, TCN is directed to transfer all market and system operation functions to NISO. Previously, TCN held transmission service provider (TSP) and system operations (SO) licenses under the Electric Power Sector Reform Act.
NERC’s directive necessitates the incorporation of a private company limited by shares under the Companies and Allied Matters Act (CAMA) by May 31, overseen by the Bureau of Public Enterprises (BPE). The newly established entity, named Nigerian Independent System Operator of Nigeria Limited (NISO), is entrusted with executing market and system operation functions as mandated by relevant legislation and licenses.
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NISO’s responsibilities encompass managing assets and liabilities pertaining to market and system operation on behalf of market participants and specified stakeholders. Furthermore, NISO will engage in negotiating contracts for ancillary services procurement with independent power producers and successor generation licensees.
This restructuring endeavor aims to fortify market and system operations in accordance with the Electricity Act and the terms of NISO’s license, serving the interests of market participants and system users.
Source: The Whistler
