MON MAY 06 2024-theGBJournal| The Nigerian Electricity Regulatory Commission (NERC) has whittled down the operational functions of the Transmission Company of Nigeria (TCN), with the establishment of a Nigerian Independent System Operator (NISO) for the Nigerian Electricity supply industry.
Recall that on the establishment of TCN in April 2005, it was issued a transmission License, and on June 10, 2013 issued two more licenses for electricity transmission and system operations.
NERC has now retrieved both licenses, and in its place issued a new Order taking effect from May 1,2024, or the establishment of the NISO.
The new Order sets out a framework for the establishment of NISO to manage system operation functions independently, ensuring the smooth functioning of Nigerian Electricity Supply Industry in line with the Electricity Ac 2023.
The NISO will hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders that maybe specified by NERC.
NISO will also carry out all system operation-related contractual rights and obligations transferred to it by the TCN.
NERC expects the transfer to completed by ”no later than 31 August, 2024” when TCN is expected to hand over its system operation license to NERC within 7 days of that date.
NERC had earlier held several stakeholders consultations and public hearings on the readiness of the market for the separation of the System Operator and market operators, as well as to determine the appropriate legal entity/structure for the NISO and the ownership and governance structure for the ISO.
The Bureau of Public Enterprises (BPE) was subsequently tasked with incorporating the NISO.
Meanwhile, the TCN is required to identify and map asset and liabilities for the System and market operation portion of its business while the BPE will oversee the transfer of these assets and liabilities to NISO, ”ensuring the continuity of contracts, employment terms, and contributions to pension schemes,” according to NERC.
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