The Nigerian Electricity Regulatory Commission (NERC), acting under the provisions of the Nigeria Electricity Act, has ordered the establishment of an Independent System Operator (ISO) to take over the market and system operations functions of the Transmission Company of Nigeria (TCN).
This was disclosed in an order by the NERC signed by Chairman and Vice Chairman to the Transmission Company of Nigeria (TCN). The order stated that upon incorporation of the new entity, the TCN should transfer its system operations licence, assets and liabilities to it.
According to the order, TCN will retain its transmission service provider licence and continue to maintain power transmission infrastructure across the country.
It further stated that the Bureau of Public Enterprise (BPE) will incorporate the new company no later than 31st May, 2024 which would be called Nigerian Independent System Operator of Nigeria Limited (“NISO”).
It stated,
“BPE shall incorporate, no later than 31 May 2024, a private company limited by shares under the Companies and Allied Matters Act to carry out the market and system operation functions stipulated in the EA and the terms and conditions of the system operation licence issued to TCN.” “TCN shall conclude the identification and mapping of the assets and liabilities for the system/market operation portion of its business and forward same to the Commission and the BPE no later than 30 June 2024.”“BPE shall, through the National Council on Privatisation, conclude the transfer of all the market and system operation assets and liabilities held by TCN to NISO (“Transfer”)”Shareholding structure and timeline for completion of the transfer
It noted that the new company’s shareholding subscribers will be the Ministry of Finance Incorporated (MOFI) and Bureau of Public Enterprise (BPE) but final shareholding structure shall be subject to further consultation with government and other stakeholders.
Also, the NERC mandated that the transfer of assets and liabilities from the TCN to the new company should be completed no later than 31st August 2024 as the TCN should relinquish its system operator licence at most 7 days after incorporation of the NISO.