The Nigerian Electricity Regulatory Commission has reorganized the Transmission Company of Nigeria by creating the Nigerian Independent System Operator of Nigeria Limited.
This change was made public in a directive signed by the Chairman of the commission, Mr Sanusi Garba, and Vice Chairman, Mr Muslim Oseni, in Abuja on Saturday.
This is happening nearly four years after the company mentioned it was consulting stakeholders as part of its plan to divide the Transmission Company of Nigeria into two entities.
The company stated that all responsibilities for market and system operation will be moved from TCN to the newly established NISO.
“With the creation of NISO, TCN will now shift its assets and debts related to market and system operations to the new entity.
It also stated that this aligns with the provisions outlined in the Electricity Act 2023, which provide clearer guidelines for incorporating and licensing an independent system operator.
TCN had previously been granted licenses by NERC for both Transmission Service Provider and System Operations.
It further stated, “The Bureau of Public Enterprises (BPE) has been instructed to establish a privately owned company limited by shares under the Companies and Allied Matters Act (CAMA) by May 31.
NISO’s duties involve overseeing assets and liabilities related to the market, and system operation on behalf of market participants and consumer groups.
NERC mentioned, “This new company, to be known as the Nigerian Independent System Operator of Nigeria Limited (NISO), will take on the market and system operation functions as specified in the Electricity Act and the terms of TCN’s system operation license.”
”The new ISO will also discuss contracts for additional services with independent power producers and generation licensees.
”In addition to carrying out market and system operation functions for the benefit of market participants and system users.”
Following the privatization of the power sector in 2013, private investors took over the generation and distribution companies while the TCN remained under the ownership and management of the Federal Government.
Since then, TCN has operated under strategic units, including two important components known as the Transmission Service Provider and the System Operator.
