The Nigerian Electricity Regulatory Commission (NERC) separated the Transmission Company of Nigeria (TCN) from the Nigerian Independent System Operator of Nigeria Limited (NISO) in an effort to increase efficiency.
TCN would assign all market and system operation responsibilities to the recently established NISO, according to a circular released by NERC.
This action complies with the Electricity Act 2023’s provisions, which offer more precise criteria for the independent system’s incorporation and licensing.
TCN previously possessed NERC-issued system operations (SO) and transmission service provider (TSP) licenses.
But now that NISO has been established, TCN will give the new organization ownership of its assets and obligations pertaining to market and system operations.
operator (ISO).
The circular states that by May 31st, the Bureau of Public Enterprises (BPE) must use the Companies and Allied Matters Act (CAMA) to form a private company limited by shares.
According to the Electricity Act and the conditions of TCN’s system operation license, this new business, to be known as the Nigerian Independent System Operator of Nigeria Limited (NISO), will take over the market and system operating responsibilities.
NERC delineated the duties of NISO, which encompassed overseeing the assets and liabilities associated with market and system functioning on behalf of market players and consumer advocacy groups.
In addition to carrying out market and system operating tasks for the benefit of market participants and independent power producers, the new ISO will also negotiate contracts for ancillary services with these parties.