TCN Unbundled As NERC Establishes New Operator For System Operation

The Nigerian Electricity Regulatory Commission has decentralised the Transmission Company of Nigeria (TCN) by establishing a new operator to handle its system operations.

The name of the new company is Nigerian Independent System Operator.

This development was announced in an order signed by the Chairman of the Commission, Mr. Sanusi Garba, and Vice Chairman, Mr. Muslim Oseni, in Abuja on Saturday.

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This is coming almost four years after the company said it was consulting stakeholders as it moves to implement the unbundling of the Transmission Company of Nigeria into two entities.

The company said all market and system operation responsibilities will be transferred from TCN to the newly formed NISO.

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”With the establishment of NISO, TCN will now transfer its assets and liabilities related to market and system operations to the new entity.

It added that the development aligns with the provisions outlined in the Electricity Act 2023, which offer clearer guidelines for incorporating and licensing an independent system operator.

It also said TCN had previously held licences issued by NERC for both Transmission Service Provider and System Operations.

It added, “The Bureau of Public Enterprises (BPE) has been directed to incorporate a private company limited by shares under the Companies and Allied Matters Act (CAMA) by May 31.

It said NISO’s responsibilities include managing assets and liabilities related to the market, and system operation on behalf of market participants and consumer groups.

NERC stated, “This new company, to be named the Nigerian Independent System Operator of Nigeria Limited (NISO), will assume the market and system operation functions as specified in the Electricity Act and the terms of TCN’s system operation licence.”

”The new ISO will also negotiate contracts for ancillary services with independent power producers and generation licensees.

”In addition to performing market and system operation functions for the benefit of market participants and system users.”

Following the privatisation of the power sector in 2013, private investors took over the generation and distribution companies while the TCN remained under the ownership and management of the Federal Government.

Since then, TCN has operated under strategic departments, including two important components called the Transmission Service Provider and the System Operator.