The Nigerian Electricity Regulatory Commission (NERC) has unbundled the Transmission Company of Nigeria (TCN) by establishing the Nigerian Independent System Operator of Nigeria Limited (NISO).
NERC made this known in a circular dated April 30.
TCN is expected to transfer all market and system operation
functions to the new company.
The commission had previously issued transmission service
provider (TSP) and system operations (SO) licences to TCN, in accordance with
the Electric Power Sector Reform Act.
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.
Therefore, in the circular, the commission ordered the
Bureau of Public Enterprises (BPE) to incorporate, unfailingly on May 31, a
private company limited by shares under the Companies and Allied Matters Act
(CAMA).
The company, NERC said, 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”),” NERC
said.
Citing the object clause of the NISO’s memorandum of
association (MOU) as provided in the Electricity Act, NERC said the company
shall “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 the Commission may specify”.
The new ISO, the commission said, will also be responsible
for negotiating and entering into a contract for the procurement of ancillary
services with independent power producers and successor generation licensees.
Also, it will generally carry out market and system
operations functions as specified under the Electricity Act and the terms of
its licence in the interest of market participants and system users.
NERC said the company is expected to carry out all market
and system operation-related contractual rights and obligations handed over by
TCN.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com