The Nigerian Electricity Regulatory Commission (NERC) has announced the restructuring of the Transmission Company of Nigeria (TCN) through the establishment of the Nigerian Independent System Operator of Nigeria Limited (NISO).
In an order dated April 30, 2023, jointly signed by NERC chairman, Sanusi Garba, and vice chairman, Musiliu Oseni, TCN is directed to transfer all market and system operation functions to the newly established entity.
This decision is in line with the provisions of the Electricity Act 2023, which lays out clear guidelines for incorporating and licensing the Independent System Operator (ISO) and facilitating the transfer of TCN’s assets and liabilities related to the ISO.
NERC has also instructed the Bureau of Public Enterprises (BPE) to establish a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020, by May 31.
The newly formed company, to be named the Nigerian Independent System Operator of Nigeria Limited (NISO), will undertake the market and system operation functions outlined in the Electricity Act and TCN’s system operation license.
According to NERC, NISO will manage all assets and liabilities related to market and system operation on behalf of designated stakeholders, including market participants and consumer groups, as specified by the Commission.
NISO will also be responsible for negotiating contracts for ancillary services with independent power producers and successor generation licensees, as well as fulfilling other market and system operation-related obligations previously managed by TCN.
