The Nigerian Electricity Regulatory Commission (NERC) has announced the unbundling of the Transmission Company of Nigeria (TCN) with the establishment of the Nigerian Independent System Operator of Nigeria Limited (NISO).

In an order dated April 30, 2023, jointly signed by NERC chairman, Sanusi Garba, and vice chairman, Musiliu Oseni, TCN is directed to transfer all market and system operation functions to the newly established company.

This decision follows the enactment of the Electricity Act 2023, which provided more precise guidelines for the incorporation and licensing of the Independent System Operator (ISO) and the transfer of assets and liabilities of TCN’s portion of the ISO.

NERC also instructed the Bureau of Public Enterprises (BPE) to incorporate a private company limited by shares under the Companies and Allied Matters Act (CAMA), 2020, by May 31.

The newly formed company, to be named the Nigerian Independent System Operator of Nigeria Limited (NISO), will assume the market and system operation functions outlined in the Electricity Act and TCN’s system operation licence.

“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.

According to NERC, NISO will manage all assets and liabilities related to market and system operation on behalf of market participants, consumer groups, or other stakeholders specified by the Commission.

It will also negotiate contracts for ancillary services with independent power producers and successor generation licensees and fulfil other market and system operation-related obligations previously held by TCN.