Electricity: FG announces new structure for Transmission Company of Nigeria

• FG has announced the part of the Transmission Company of Nigeria into 2 businesses; the Independent System Operator and the Transmission Service Provider
• The authorities of Nigeria formally inaugurated the committee and absorption of the Nigerian Independent System Operator
• The TSP volition beryllium successful complaint of TCN's carnal infrastructure nether the caller organization, portion the NISO would oversee strategy operations

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Transmission Company of Nigeria (TCN) has been divided up into 2 companies, marking a large measurement successful the Nigerian government's efforts to modernize the nation's electrical industry.

Transmission Company of Nigeria (TCN) volition beryllium divided into 2 entities: the Independent System Operator (ISO) and the Transmission Service Provider (TSP), Photo Credit: FG
Source: UGC

The committee and absorption of the Nigerian Independent System Operator (NISO) were officially inaugurated by the authorities connected Tuesday.

In April 2004, the TCN, which oversees the country's electrical transmission network, was 1 of 18 businesses that were separated from the now-defunct Power Holding Company of Nigeria (PHCN). It received a transmission licence a twelvemonth aft being incorporated successful November 2005.

Premium Times reported that the Transmission, strategy operation, and powerfulness trading are among TCN's authorized activities. At the moment, the authorities owns and runs the full business.

The Nigerian authorities alluded to intentions to divided the TCN into 2 organizations successful December 2023.

Minister of powerfulness speaks connected division

The Nigerian Energy Supply Industry (NESI) transmission sub-sector has been highlighted arsenic a important anemic nexus successful the vigor worth chain, according to Adebayo Adelabu, Nigeria's Minister of Power astatine the time.

“To align with the Electricity Act 2023 and the industry’s demands, it’s clip to restructure the Transmission Company of Nigeria (TCN) into 2 entities: the Independent System Operator (ISO) and the Transmission Service Provider (TSP),” Mr Adelabu said astatine the time.

Under the caller arrangement, the NISO volition beryllium successful power of strategy operations, distributing load from generating companies to organisation firms and qualified customers, portion the TSP would beryllium successful work of TCN's carnal infrastructure, specified arsenic transmission towers, powerfulness lines, and substations.

Abdu Mohammed, NISO's managing manager and main enforcement officer, stated during the Bureau of Public Enterprises' induction ceremonial successful Abuja connected Tuesday that the enactment is dedicated to improving the quality, availability, and dependability of Nigerians' energy supply.

“You callback the transition of the measure that enacted the Electricity Act 2023, arsenic amended, and the provisions therein for the instauration of the Nigerian Independent System Operator. So, going by the law, the NISO has been inaugurated contiguous by His Excellency, the Vice President of Nigeria, Kashim Shettima. We person been inaugurated this afternoon, and we person assumed the occupation relation arsenic described by the Electricity Act 2023.“Our large relation successful the powerfulness manufacture is to bring the needed changes successful the strategy that volition heighten availability, reliability, and prime of proviso of energy to Nigerians. In summation to that, we’re expected to make an atmosphere, an situation of transparency, discipline, and orderliness successful the energy concern successful Nigeria, meaning that participants successful generation, transmission, distribution, and eligible customers behave successful a passionate mode successful enactment with the provisions of the marketplace rules and the grid code,” helium said.

He added that the NISO Board of Management's accomplishment volition bring these attributes that are indispensable for the powerfulness assemblage to function, akin to those of different powerfulness sectors successful larger jurisdictions.

FG's large relation successful the powerfulness manufacture is to bring the needed changes successful the system. Photo Credit: Contributor
Source: UGC

The recently formed NISO's enforcement and non-executive committee members were chosen by President Bola Tinubu past month.

7 firms permission nationalist grid to make energy successful Lagos, FCT, others

Legit.ng reported that portion Nigeria continues to conflict its powerfulness outage and incessant grid collapses, much institutions are leaving the nationalist grid to make power.

Another six firms and 1 backstage assemblage person conscionable secured their licence from the Nigerian Electricity Regulatory Commission to make and administer electricity.

The 7 firms, which see the Nile University of Nigeria successful Abuja, volition beryllium generating up to 30MW of energy nether antithetic arrangements.

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Source: Legit.ng