Nigerian govt unbundles TCN, new system operator emerges

The Nigerian Electricity Regulatory Commission (NERC) has unbundled the Transmission Company of Nigeria (TCN) and ordered it to transfer all market and system operation functions to the newly established Nigerian Independent System Operator of Nigeria Limited (NISO).

The commission disclosed this in a circular dated April 30, 2024.

The circular was however made available to journalists on Friday.

NERC had previously issued transmission service provider (TSP) and system operations (SO) licences to TCN in accordance with the Electric Power Sector Reform Act (EPSRA).

READ ALSO: TCN restores national grid after second system collapse in 2024

However, the Electricity Act 2023, which came into effect on June 9, provided clearer guidelines for the incorporation and licensing of the independent system operator (ISO) as well as the transfer of assets and liabilities of TCN’s portion of the ISO.

In the circular, the commission ordered the Bureau of Public Enterprises (BPE) to incorporate a private company limited by shares under the Companies and Allied Matters Act (CAMA) by May 31.

The company, according to NERC, is expected “to carry out the market and system operation functions stipulated in the Electricity Act and the terms and conditions of the system operation licence issued to TCN.”

“The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (“NISO”),” it added.

By: Babajide Okeowo

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now