Nigeria has initiated processes to unbundle the Transmission Company of Nigeria to create two separate entities in a bid to ensure reliable and efficient power supply across the country.
The West African nation, which has been experiencing power supply challenges even before President Bola Ahmed Tinubu came into office, wants to establish an Independent System Operator as a distinct entity that will be responsible for managing the national grid and other system operations related to market contracts and transactions.
TCN would be unbundled into Transmission Service Provider (TSP) and Independent System Operator, as prescribed in the Electricity Act 2023.
This was contained in an Order issued by the Nigerian Electricity Regulatory Commission (NERC) and signed by its Chairman, Engr. Sanusi Garba, and Vice Chairman Musiliu Oseni on April 30.
The NERC has charged the Bureau of Public Enterprise (BPE) to act quickly by ensuring that the incorporation of the Independent System Operator is done no later than 31st May 2024.
“The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (NISO).”
According to the order, TCN will transfer all market and system operation functions to the newly formed NISO.
NERC said that this is 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.
It said that previously, TCN held Transmission Service Provider, TSP and System Operations, SO licences issued by NERC.
”With the establishment of NISO, TCN will now transfer its assets and liabilities related to market and system operations to the new entity.
”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 licence,” it said.
The company outlined NISO’s responsibilities to include 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,” it said.
Source: https://energynewsafrica.com
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