The Nigerian Electricity Regulatory Commission (NERC) has taken bold step to unbundle the Transmission Company of Nigeria (TCN) with a directive to the Bureau of Public Enterprises (BPE) to incorporate a limited liability company to be known as Nigerian Independent System Operator of Nigeria Limited (NISO) not later than 31 May, 2024.
NERC gave the directive to BPE through ORDER NO: NERC/2024/45 and to be cited as the Order on the Establishment of the Independent System Operator with effect from May 1, 2024.
Prior to this, there have hues and cries over the need to unbundle TCN as means of relieving it some of its current responsibilities, which many critics have cited as weighing down TCN, and resulting to the increasing frequencies of national grid collapses.
Further, some argued that TCN is being diverted by many issues to the extent of losing focus on stable power transmission, grid expansion and maintenance.
In the Order jointly endorsed by the NERC Chairman, Engr. Sanusi Garba and Vice Chairman, Musiliu Oseni, the NISO, shall be “limited by shares under the Companies and Allied Matters Act to carry out the market and system operation functions stipulated in the Electricity Act (EA) 2023 and the terms and conditions of the system operation licence issued to TCN.
Also, NERC ordered that “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 BPE no later than 30 June 2024”.
NERC refered that the functions and responsibilities of the NISO shall be as contained in the object clause of the Memorandum of Association of the NISO as provided in section 16(2) of EA as follows –
“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 the Commission may specify;
“To carry out all market and system operation-related contractual rights and obligations novated to it by the Transmission Company of Nigeria;
“To negotiate and enter 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 EA and the terms of its license in the interest of market participants and system users;
“To carry out all market and system operation-related contractual rights and obligations novated to it by the Transmission Company of Nigeria;
“The income and property transferred to it by the TCN or whensoever derived shall be applied solely towards the promotion of its objects as set forth in its incorporation Documents and no portion thereof shall be paid or transferred directly or indirectly by way of dividend, or bonus otherwise howsoever, by way of profit to the subscribers: provided that nothing herein contained shall prevent the payment in good faith of remuneration to any contractor or staff of the company in return for any services rendered to the Company.”
NERC further directed among other things that ” Every person employed by TCN to perform market and system operations immediately before the Transfer Date shall be transferred to the service of NISO on terms not less favourable than those enjoyed by him/her immediately prior to his/her transfer.”
It added that the service rendered by such employee transferred from TCN shall be deemed service with NISO to determine employment-related entitlements as specified in relevant laws of employment in Nigeria.
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