The Federal Government through the Nigerian Electricity Regulatory Commission (NERC) has unbundled the Transmission Company of Nigeria (TCN) as it has established the Nigerian Independent System Operator of Nigeria Limited (NISO).
This was contained in NERC’s circular dated April 30 and sighted by New Telegraph on Friday, May 3.
According to the circular, the 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 Order No: NERC/2024/45, which was signed by NERC Chairman, Engr. Sanusi Garba and Vice Chairman, Dr. Musliu Oseni signed took effect from 1st May, 2024.
“The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (“NISO”).
NERC said: “Before the Nigerian Electricity Regulatory Commission Order on the Establishment of the Independent System Operator for the Nigerian Electricity Supply Industry.
“This regulatory instrument may be cited as the Order on the Establishment of the Independent System Operator.
NERC cited the object clause of the NISO’s memorandum of association (MOU) as provided in the Electricity Act.
It said: The company shall “hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders as the Commission may specify”.
It added that the new ISO, 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.
It further said that it 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.
It added the company is expected to carry out all market and system operation-related contractual rights and obligations handed over by TCN.
TCN is expected to transfer all market and system operation functions to the new company..
