The Nigerian Electricity Regulatory Commission (NERC) has announced the unbundling of the Transmission Company of Nigeria (TCN) with the establishment of the Nigerian Independent System Operator of Nigeria Limited (NISO).
In a circular dated April 30, NERC disclosed that TCN would transfer all market and system operation functions to the newly formed NISO.
This move comes 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).
Previously, TCN held transmission service provider (TSP) and system operations (SO) licenses issued by NERC. However, with the establishment of NISO, TCN will now transfer its assets and liabilities related to market and system operations to the new entity.
According to the circular, 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 license.
NERC outlined NISO’s responsibilities, including managing assets and liabilities related to market and system operation on behalf of market participants and consumer groups.
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.
The commission emphasized that NISO would inherit all market and system operation-related contractual rights and obligations from TCN.
