The Nigerian Electricity Regulatory Commission (NERC) has announced the restructuring of the Transmission Company of Nigeria (TCN).
The restructuring involves the establishment of the Nigerian Independent System Operator of Nigeria Limited (NISO), as revealed in an order signed by NERC Chairman, Mr. Sanusi Garba, and Vice Chairman, Mr. Muslim Oseni, in Abuja on Saturday.
This restructuring, which comes nearly four years after initial consultations with stakeholders, marks a pivotal moment in the unbundling of TCN into two distinct entities. The newly formed NISO will now assume all market and system operation responsibilities previously held by TCN.
Under this development, TCN will transfer its assets and liabilities related to market and system operations to NISO, aligning with provisions outlined in the Electricity Act 2023.
The establishment of NISO provides clearer guidelines for the incorporation and licencing of an independent system operator, in accordance with regulatory frameworks.
The Bureau of Public Enterprises (BPE) has been tasked with incorporating a private company limited by shares under the Companies and Allied Matters Act (CAMA) by May 31, facilitating the formalisation of NISO’s structure and operations.
NISO’s mandate includes managing assets and liabilities related to the market and system operations on behalf of market participants and consumer groups. It will negotiate contracts for ancillary services with independent power producers and generation licensees, further streamlining operations in the electricity market.
This restructuring follows the privatisation of the power sector in 2013, which saw private investors take over generation and distribution companies, while TCN remained under federal government ownership and management. With NISO’s establishment, a more focused approach to market and system operations is expected, ushering in a new era of efficiency and effectiveness in Nigeria’s electricity transmission sector.
