Breaking News: NERC Restructures TCN, Introduces New System Operator

Breaking News: NERC Restructures TCN, Introduces New System Operator....KINDLY READ THE FULL STORY HERE▶

The Nigerian Electricity Regulatory Commission (NERC) has announced the unbundling of the Transmission Company of Nigeria (TCN) in a circular dated April 30, 2023, jointly signed by its Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni.

As part of this restructuring, NERC has established the Nigerian Independent System Operator of Nigeria Limited (NISO). TCN is directed to transfer all market and system operation functions to this new entity.

Previously, TCN held Transmission Service Provider (TSP) and System Operations (SO) licenses. However, the Electricity Act 2023, effective from June 9, provided clearer guidelines for the incorporation and licensing of the independent system operator (ISO), as well as the transfer of assets and liabilities.

In accordance with the circular, the Bureau of Public Enterprises (BPE) is instructed to incorporate a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020, by May 31. This company, named Nigerian Independent System Operator of Nigeria Limited (NISO), will manage all assets and liabilities related to market and system operation on behalf of stakeholders specified by the Commission.

The NISO will handle negotiations and contracts for ancillary services procurement with independent power producers and successor generation licensees. NERC emphasizes that the new ISO will perform market and system operations functions in accordance with the Electricity Act and the terms of its license, aiming to serve the interests of market participants and system users.

The company will take over all market and system operation-related contractual rights and obligations previously held by TCN.

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