Nigerian Electricity Regulatory Commission Issues New Order Empowering An Independent Body On System Operation For The National Grid In Compliance To 2023 Electricity Act.

The Nigerian electricity regulatory commission has issued a new Order taking effect from 1 May 2024 establishing the Nigerian Independent System Operator Limited (“NISO”).

The NISO according to Nerc in a press statement is to 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 NERC may specify.

“NISO will now carry out all market and system operation-related contractual rights and obligations transferred to it by the Transmission Company of Nigeria (TCN)”.

While giving a background to the latest development, the Nigerian electricity regulatory commission, noted that the transmission company of Nigeria plc, as a successor company was issued two years separate licenses to operate as the transmission service provider, and system operations for the national grid system, the regulatory body in the press statement however noted, that the new electricity act which came into effect in June, 2023 provides the transfer of the function of system operations for the national grid to an independent system operator, (ISO), from the TCN, a development the commission described in the press statement as a direct fallout from the repealed electric power sector reform act of 2005 which envisaged that the TCN will transfer the function of system operation for the national grid to an independent body, which has now come to be known as the “Nigerian independent system operator limited” .

This transfer according to the Nigerian electricity regulatory commission shall be concluded not later than 31 August 2024 when TCN is expected to hand over its system operation licence to NERC within 7 days of that date.