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The Nigerian Electricity Regulatory Commission (NERC) has issued an order to create the Nigerian Independent System Operator of Nigeria Limited (NISO) within the next 30 days. This development will result in the splitting of the Transmission Commission of Nigeria (TCN). The NISO will be directly responsible for managing the network, including the troubled national grid and other related market contracts.
According to the order, TCN has been directed to identify and map the assets and liabilities for the system and market operation portion of its business within 30 days. This information should be forwarded to the commission and the Bureau of Public Enterprises (BPE) no later than June 30, 2024.
The BPE, through the National Council on Privatization, will then oversee the transfer of all market and system operation assets and liabilities from TCN to NISO. This order effectively withdraws one of the two operating licenses held by TCN, which allows it to function as a transmission service provider and independent system operator.
In compliance with the Electricity Act 2023, NERC has instructed the BPE to establish a private company limited by shares by May 31, 2024. This company will carry out the market and system operation functions specified in the Act and the terms and conditions of the system operation license issued to TCN.
The new company, named the Nigerian Independent System Operator of Nigeria Limited (NISO), will hold and manage all assets and liabilities related to market and system operation on behalf of market participants and consumer groups. It will also be responsible for carrying out market and system operation-related contractual rights and obligations transferred from TCN.
Additionally, NISO will negotiate contracts for ancillary services with independent power producers and other stakeholders in the interest of market participants and system users.
