News
Breaking….. NERC unbundles TCN, introduces NISO to take over assets, liabilities
The Nigerian Electricity Regulatory Commission (NERC), has unbundled the Transmission Company of Nigeria (TCN) with the establishment of the Nigerian Independent System Operator of Nigeria Limited (NISO).
The company disclosed this in an order signed by its Chairman, Mr Sanusi Garba and the Vice Chairman, Mr Muslim Oseni in Abuja on Saturday.
According to the order, TCN will transfer all market and system operation functions to the newly formed NISO.
The company 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.”
According to the order, 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 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.
The NERC has issued a new Order taking effect from 1 May 2024 establishing the Nigerian Independent System Operator Limited (“NISO”).
It is to hold and manage all assets and liabilities pertaining to market and system operation on behalf of market participants and consumer groups or such stakeholders as NERC may specify.
NISO will now carry out all market and system operation-related contractual rights and obligations transferred to it by the Transmission Company of Nigeria (TCN).
This transfer shall be concluded no later than 31 August 2024 when TCN is expected to hand over its system operation licence to NERC within 7 days of that date,” the order said.
NAN
Contact: info@royalnews.com.ng