July 18, 2024

The Nigerian Electricity Regulatory Commission (NERC) has unbundled the Transmission Company of Nigeria (TCN) and established the Nigerian Independent System Operator of Nigeria Limited (NISO).

On Saturday, the business stated this in an order signed by its Chairman, Mr Sanusi Garba, and Vice Chairman, Mr Muslim Oseni, in Abuja.

According to the directive, TCN will hand over all market and system operation functions to the newly constituted NISO.
The company stated that this is consistent with the terms of the Electricity Act 2023, which establishes clearer standards for the establishment and licensing of independent system operators (ISOs).

It stated that earlier, TCN held Transmission Service Provider (TSP) and System Operations (SO) licenses issued by NERC.

”With the establishment of NISO, TCN will now transfer its assets and liabilities related to market and system operations to the new entity.

According to the order, the Bureau of Public Enterprises (BPE) has been directed to incorporate a private company limited by shares under the Companies and Allied Matters Act (CAMA) by May 31.

”This new company, to be named the Nigerian Independent System Operator of Nigeria Limited (NISO), will assume the market and system operation functions as specified in the Electricity Act and the terms of TCN’s system operation licence,”It said.

The company outlined NISO’s responsibilities to include managing assets and liabilities related to market, and system operation on behalf of market participants and consumer groups.

”The new ISO will also negotiate contracts for ancillary services with independent power producers and generation licensees.

”In addition to performing market and system operation functions for the benefit of market participants and system users”It said.

 

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