NERC separates TCN and establishes new system operator

The Nigerian Electricity Regulatory Commission (NERC) has separated the Transmission Company of Nigeria (TCN) with the establishment of the Nigerian Independent System Operator Limited (NISO).

NERC made this known in an Order dated April 30, 2023 and jointly signed by NERC Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni.

Through this order, TCN is expected to transfer all system and market operation functions to the new company.

The commission had previously issued transmission service provider (TSP) and system operation (SO) licenses to TCN, in accordance with the Electricity Sector Reform Law.

However, the Electricity Act 2023, which came into force on June 9, provided clearer guidelines for the establishment and licensing of the independent system operator (ISO), as well as the transfer of assets and liabilities of the party. of the ISO corresponding to TCN.

Therefore, in the circular, the commission ordered the Bureau of Public Enterprises (BPE) to establish, without fail on May 31, a private joint stock company under the Companies and Allied Matters Act (CAMA), 2020.

The company, NERC said, is expected to “perform the system operation and market functions stipulated in the Electricity Law and the terms and conditions of the system operation license granted to TCN.

“The name of the company, subject to availability at the Corporate Affairs Commission, will be Nigerian Independent System Operator Limited (“NISO”),” NERC said.

Citing the object clause of NISO’s memorandum of association (MOU) as provided in the Electricity Act, NERC said the company shall “maintain and manage all assets and liabilities related to the market and operation of the system on behalf of market participants and consumer groups or interested parties. as specified by the Commission.”

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.

In addition, it will generally carry out market and system operation functions as specified in the Electricity Law and the terms of its license in the interests of market participants and system users.

NERC said the company is expected to carry out all contractual rights and obligations related to the operation of the system and market transferred by TCN.