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).
TCN, which disclosed this in an order signed by its Chairman, Sanusi Garba, and Vice Chairman, Muslim Oseni, in Abuja, on Saturday, May 4, said the company will transfer all market and system operation functions to NISO.
The company explained that this was 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).
TCN previously held Transmission Service Provider (TSP) and System Operations (SO) licences issued by NERC, but with the establishment of NISO, TCN will transfer its assets and liabilities related to market and system operations to the new entity.
According to the order, 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,” the order stated.
TCN outlined NISO’s responsibilities to include managing assets and liabilities related to market and system operation on behalf of market participants and consumer groups, negotiate contracts for ancillary services with independent power producers and generation licensees and perform market and system operation functions for the benefit of market participants and system users.
