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NERC Unbundles TCN, Establishes Nigerian Independent System Operator (NISO) for Enhanced Electricity Market Operations

Boom RadioNG | May 4, 2024

The Nigerian Electricity Regulatory Commission (NERC) has made a significant announcement regarding the unbundling of the Transmission Company of Nigeria (TCN) and the establishment of the Nigerian Independent System Operator of Nigeria Limited (NISO). This development comes as a result of the enactment of the Electricity Act 2023, which provides clearer guidelines for the incorporation and licensing of the Independent System Operator (ISO) and the transfer of assets and liabilities from TCN to NISO.

In an order jointly signed by NERC Chairman Sanusi Garba and Vice Chairman Musiliu Oseni, TCN has been directed to transfer all market and system operation functions to the newly established NISO. This move aims to enhance the efficiency and effectiveness of the electricity market in Nigeria.

According to the order, the Bureau of Public Enterprises (BPE) has been instructed to incorporate a private company limited by shares under the Companies and Allied Matters Act (CAMA) by May 31. The newly formed company, named the Nigerian Independent System Operator of Nigeria Limited (NISO), will assume the market and system operation functions outlined in the Electricity Act and TCN’s system operation license.
NERC Chairman, Sanusi Garba,

NERC Chairman, Sanusi Garba,

NERC emphasizes that NISO will manage all assets and liabilities related to market and system operation on behalf of market participants, consumer groups, and other stakeholders specified by the Commission. The company will also be responsible for negotiating contracts for ancillary services with independent power producers and successor generation licensees, as well as fulfilling other market and system operation-related obligations previously held by TCN.
The establishment of NISO marks a significant step towards enhancing the electricity market in Nigeria. The company will play a crucial role in managing the operations and ensuring the smooth functioning of the market, benefiting both market participants and consumers.

Written by Boom RadioNG

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