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,
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.