In a directive dated April 30, 2023, jointly signed by NERC chairman Sanusi Garba and vice chairman Musiliu Oseni, the Nigerian Electricity Regulatory Commission (NERC) announced the unbundling of the Transmission Company of Nigeria (TCN) with the establishment of the Nigerian Independent System Operator of Nigeria Limited (NISO).
This decision, in accordance with the Electricity Act 2023, specifies the transfer of all market and system operation functions from TCN to the newly formed NISO.
The Act provides detailed guidelines for the incorporation and licensing of the Independent System Operator (ISO) and the transfer of TCN’s assets and liabilities to the ISO.
NERC further instructed the Bureau of Public Enterprises (BPE) to incorporate a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020, by May 31.
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The newly formed NISO will manage all market and system operation functions as outlined in the Electricity Act and TCN’s system operation license.
It will oversee assets and liabilities related to market and system operation on behalf of specified stakeholders, negotiate contracts for ancillary services, and fulfill other market and system operation-related obligations previously held by TCN.
According to NERC, the name of the new entity will be the Nigerian Independent System Operator of Nigeria Limited (NISO), pending availability confirmation at the Corporate Affairs Commission.
