FG unbundles TCN, new company to take over national grid

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FG unbundles TCN, new company to take over national grid

A new order by the Nigerian Electricity Regulatory Commission (NERC) will in the next 30 days create the Nigerian Independent System Operator of Nigeria Limited (NISO), a development that will split the Transmission Commission of Nigeria (TCN).

The system operator is directly in charge of the network, especially the troubled national grid and other related market contracts, which is controlled from Osogbo.

The order with the number NERC/2024/45, dated April 30 and signed by Chairman of NERC, Sanusi Garba and Vice Chairman, Musiliu Oseni, noted that within 30 days, TCN shall conclude the identification and mapping of the assets and liabilities for the system/market operation portion of its business and forward same to the commission and the Bureau of Public Enterprises (BPE) no later than June 30, 2024.

The BPE, according to the order shall, through the National Council on Privatisation, conclude the transfer of all the market and system operation assets and liabilities held by TCN to NISO.

The prevailing situation means that NERC has withdrawn one of the two operating licences held by TCN, which allows it to function as a Transmission Service Provider and Independent System Operator.

In line with the Electricity Act 2023, NERC asked BPE to “incorporate, no later than May 31, 2024, a private company limited by shares under the Companies and Allied Matters Act to carry out the market and system operation functions stipulated in the EA and the terms and conditions of the system operation licence issued to TCN.”

It added: “The name of the company shall, subject to availability at Corporate Affairs Commission, be the Nigerian Independent System Operator of Nigeria Limited (NISO). The object clause of the Memorandum of Association of the NISO as provided in section 16 subsection two of Electricity Act 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 common is also expected to carry out all market and system operation-related contractual rights and obligations novated to it by the Transmission Company of Nigeria while negotiating and entering into contract for the procurement of ancillary services with independent power producers, successor generation licensees, etc and generally carryout market and system operations functions as specified under the Electricity Act and the terms of its license in the interest of market participants and system users.”

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