The Nigerian Electricity Regulatory Commission (NERC) has restructured the Transmission Company of Nigeria (TCN), establishing the Nigerian Independent System Operator Limited (NISO) for the Nigerian Electricity Supply Industry (NESI).
This decision was revealed in Order No: NERC/20U/45 signed and issued by NERC’s Chairman, Sanusi Garba, and Vice Chairman, Musiliu Oseni.
The move comes as part of NERC’s efforts, in collaboration with stakeholders in the power sector, to implement the restructuring of TCN into two entities. As mandated by the Commission, these entities will function as the transmission service provider and system operator for the national grid system.
NERC stated that all market and system operation responsibilities will now be transferred from TCN to the newly formed NISO.
“With the establishment of NISO, TCN will now transfer its assets and liabilities related to market and system operations to the new entity” NERC declared.
The establishment of NISO aligns with the provisions outlined in the Electricity Act 2023, which provide clearer guidelines for incorporating and licencing an independent system operator. TCN previously held licences issued by NERC for both transmission service providers and system operations.
“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,″ NERC added.
The newly formed company, named the Nigerian Independent System Operator of Nigeria Limited (NISO), will assume the market and system operation functions specified in the Electricity Act and the terms of TCN’s system operation licence.
”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,” NERC stated.
Following the privatisation of the power sector in 2013, private investors took over the generation and distribution companies, while TCN continued under the ownership and management of the Federal Government. TCN has operated under strategic departments, including the Transmission Service Provider and the System Operator.
