The Nigerian Electricity Regulatory Commission (NERC) has unbundled the Transmission Company of Nigeria (TCN) with the establishment of the Nigerian Independent System Operator of Nigeria Limited (NISO).
This was made known via an order signed by the NERC Chairman, Sanusi Garba, and Vice Chairman, Muslim Oseni, on Saturday, May 4, 2024.
NERC noted that TCN will transfer all market and system operation functions to the newly formed NISO.
It stated that this is in line with the provisions of the Electricity Act 2023, which provides clearer guidelines for the incorporation and licensing of the independent system operator (ISO).
It said TCN previously held Transmission Service Provider (TSP) and System Operations (SO) licences issued by the NERC.
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“With the establishment of NISO, TCN will now transfer its assets and liabilities related to market and system operations to the new entity,” the commission added.
NERC further stated that 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.
NERC outlined NISO’s responsibilities to include managing assets and liabilities related to market, and system operation on behalf of market participants and consumer groups.
It added: ‘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.”
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