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 disclosed in an order jointly signed by NERC chairman Sanusi Garba and vice chairman Musiliu Oseni.
By this order, TCN is expected to transfer all market and system operation functions to the new company.
According to Punch, NERC had previously granted TCN transmission service provider (TSP) and system operations (SO) licenses in line with the Electric Power Sector Reform Act.
However, the Electricity Act of 2023, effective June 9, outlined clearer procedures for establishing and licensing the independent system operator (ISO) and transferring TCN’s assets and liabilities to the ISO.
Consequently, in the circular, the commission directed the Bureau of Public Enterprises (BPE) to incorporate a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020, by May 31 without fail.
The company, NERC said, 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.
NERC said:
Citing the object clause of the NISO’s memorandum of association (MOU) as provided in the Electricity Act, NERC added that 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.
The commission also added that the forthcoming ISO will oversee the negotiation and contracting of ancillary services with independent power producers and successor generation licensees.
Additionally, it will execute market and system operations duties outlined in the Electricity Act and its license terms, aiming to benefit market participants and system users.
NERC emphasized that the company is tasked with assuming all market and system operation-related contractual responsibilities previously held by TCN.
TimesNow.com.ng earlier reported that Nigerian electricity companies need new investors to revitalize the industry. They need an estimated N2 trillion ($2.5 billion) in capital.
In an interview, Olu Verheijen, an adviser to President Bola Tinubu on energy, said the companies must be more leveraged and capitalized.
Due to poor pricing, inconsistent revenue collection, and a decaying national system, most people in the most populous country in Africa now generate their electricity with loud generators.
Source: TimesNow.com.ng
