Power Sector Shake-Up: NISO Takes the Reins from TCN

In a significant move to enhance the efficiency and effectiveness of the power sector, the Nigerian Electricity Regulatory Commission (NERC) has issued a new Order establishing the Nigerian Independent System Operator Limited (NISO).

The Order, which takes effect from May 1, 2024, marks a major milestone in the power sector reform and is expected to have far-reaching implications for the transmission and distribution of electricity in Nigeria.

Under the new arrangement, NISO will take over the management of all assets and liabilities related to market and system operation from the Transmission Company of Nigeria (TCN).

This includes the management of the national grid, ensuring a stable and reliable supply of electricity, and interacting with market participants and consumer groups on all market and system operation-related matters.

The establishment of NISO is aimed at promoting a more efficient and effective power sector, with a focus on improving the reliability and stability of the national grid. The new entity will be responsible for:

– Managing the national grid and ensuring a stable and reliable supply of electricity
– Coordinating the transmission and distribution of electricity
– Ensuring compliance with grid codes and operating standards
– Providing transparent and non-discriminatory access to the grid
– Managing congestion and grid security

The transfer of assets and liabilities from TCN to NISO is expected to be completed by August 31, 2024, with TCN handing over its system operation license to NERC within 7 days of the transfer deadline.

According to NERC, the establishment of NISO is a critical step towards achieving the Commission’s vision of a robust and efficient power sector.

“The creation of NISO is a significant milestone in our efforts to reform the power sector and improve the reliability and stability of the national grid,” said an NERC spokesperson.

“We are confident that NISO will play a critical role in enhancing the efficiency and effectiveness of the power sector and improving the overall experience for consumers.”

The development is expected to have a positive impact on the power sector, with market participants and consumer groups set to benefit from a more efficient and effective system operation. As the power sector continues to evolve, NISO is well-positioned to play a leading role in shaping the future of the industry.

What this means for:

– Market Participants: NISO will be the new interface for all market and system operation-related matters, providing a more efficient and effective system operation.
– Consumer Groups: NISO will ensure a stable and reliable supply of electricity, improving the overall experience for consumers.
– TCN: TCN will focus on its core mandate of transmission infrastructure development and maintenance, with NISO taking over system operation responsibilities.

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