The Nigerian Electricity Regulatory Commission has ordered the Bureau of Public Enterprise to establish the Nigerian Independent System Operator Limited out of the existing Transmission Company of Nigeria on or before May 31, 2024.
NERC in a statement said the Nigerian Independent System Operator Limited came into existence via a new order which takes effect from May 1, 2024.
The NISO 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.
“The transfer shall be concluded not later than August 1, 2024 when TCN is expected to hand over its system operation license to NERC within 7 days of that date,” the statement added.
Expatiating on the rationale behind the new entity, NERC stated that, “The Transition Company of Nigeria as a successor company was issued 2 separate licences to operate as the transmission service provider and system operator for the national grid system by the Commission
“The repealed Electric power Sector Reform Act 2005 envisaged that TCN would transfer the function of system operation for the national grid to an Independent System Operator.
“The Electricity Act 2023 came into effect on 9 June 2023 and this piece of legislation went beyond the Repealed Act by providing clearer guidelines for the incorporation, governance, structure and licensing of the ISO, as well as the transfer of the assets and liabilities of the system operators portion of TCN to the ISO.
“NERC also ordered BPE to incorporate a private company limited by shares under the Companies and Allied Matter Act to carry out the market and system operation functions stipulated in the Electric Act not later than May 31, 2024, and the terms and conditions.”
