The Nigerian Electricity Regulatory Commission (NERC) has unbundled the Transmission Company of Nigeria (TCN) by establishing the Nigerian Independent System Operator of Nigeria Limited (NISO).
Recall in December 2023, the federal government had said as part of the overall reform of the sector, the TCN would be unbundled into two distinct entities.
The government admitted that TCN, which is responsible for managing the national power grid as well as delivering bulk electricity to distribution companies and eligible customers, has been identified as the weakest segment in the Nigerian Electricity Supply Industry, (NESI).
However, a circular dated April 30 revealed that TCN is expected to transfer all market and system operation functions to NISO.
The commission had previously issued transmission service provider (TSP) and system operations (SO) licences to TCN, under the Electric Power Sector Reform Act.
In the circular, the commission ordered the Bureau of Public Enterprises (BPE) to incorporate, unfailingly on May 31, a private company limited by shares under the Companies and Allied Matters Act (CAMA).
NERC said the new company, is expected “To carry out the market and system operation functions stipulated in the Electricity Act and the terms and conditions of the system operation licence issued to TCN”.
“The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (NISO).
“The company shall hold and manage all assets and liabilities about market and system operation on behalf of market participants and consumer groups or such stakeholders as the Commission may specify”.
The new ISO, the commission said, will also be responsible for negotiating and entering into a contract for the procurement of ancillary services with independent power producers and successor generation licensees.
Subsequently, the company will generally carry out market and system operations functions as specified under the Electricity Act and the terms of its licence in the interest of market participants and system users.