Politically speaking, it is clear that the Nigerian Electricity Regulatory Commission (NERC) has been quite busy of late in the power sector as it has started the process of unbundling the Transmission Company of Nigeria (TCN) with the creation of the Nigerian Independent System Operator (NISO) out of it. This was contained in an Order dated April 30, 2024, jointly signed by NERC Chairman, Sanusi Garba and Vice Chairman, Musiliu Oseni. With this development, NISO is expected to take over the market and system operations functions of the Transmission Company of Nigeria (TCN).

The establishment of NISO is in compliance with the repealed Electric Power Sector Reform Act (EPSRA 2005) and its replacement, the Electricity Act 2023 that provides clearer guidelines for the incorporation and licensing of the Independent System Operator (ISO). Prior to now, TCN held Transmission Service Provider (TSP) and System Operations (SO) licences issued by NERC.

Following this development, TCN is expected to transfer its assets and liabilities related to market and system operations to the new outfit and the Bureau of Public Enterprises (BPE) has been instructed to incorporate a private company limited by shares under the Companies and Allied Matters Act (CAMA) by May 31. The NERC’s order states that “This new company, to be named the Nigerian Independent System Operator of Nigeria Limited (NISO), will assume the market and system operation functions as specified in the Electricity Act and the terms of TCN’s system operation licence.”

The new NISO is expected to carry out such responsibilities as managing assets and liabilities related to market, and system operation on behalf of market participants and consumer groups, or specified stakeholders. It will also negotiate contracts for ancillary services procurement contracts with independent power producers and generation licencees.

The separation of ISO from TCN is a positive one for the Nigerian Electricity Supply Industry (NESI) as the new entity will perform its functions more objectively and unfettered. Being under a distinct management will enable ISO engage every service provider on the same level playing field without unnecessary soft spot and preferences.

To make the new outfit truly independent and efficient, the owners should provide it with basic system operation tools like  sufficient reserves, upgrade/replace aged and defective equipment, functional SCADA, internal communication media such as optic fibre, PLC/PAX, VOIP, PLS etc as well as making the numerous 330kV and 132kV substations comfortable and conducive for work.

Last but not the least, creating safe working environments and enhancing staff welfare are necessary to further motivate the dedicated workforce to keep doing the good job of ensuring stable and reliable power supply to Nigerians, which has been their hallmark over the years.