Push towards collaborative action for a robust and resilient electrical system advocated by NISO
In a recent stakeholder engagement, Abdu Mohammed, the Managing Director of the Nigerian Independent System Operator (NISO), addressed the Tarriff Adjustment for customers in Enugu State. The discussion, held with NISO Management and the Enugu Electricity Distribution Company (EEDC), aimed to ensure the stability of the Nigerian electricity market.
Mohammed began by acknowledging the license and operational responsibilities of the EEDC, as well as the statutory powers of the Enugu State Electricity Regulatory Commission. He also emphasised NISO's distinct statutory role as the administrator of the Nigerian wholesale electricity market and a quasi-regulator of market operations.
The meeting was approached with neutrality, respect, and an open mind, and was not intended to question the authority of the regulator or the operators. NISO's role in the discussion was grounded in its market administration and system operations mandate through the Electricity Act 2023, market rules, and the grid code.
The discussion followed a recent order issued by the Enugu State Electricity Regulatory Commission revising the electricity tariff within the state. Mohammed's objective was to understand the facts, assumptions, and considerations behind the tariff adjustment, examine its potential impact, and explore harmonization of state-level regulatory innovation with commercial discipline.
The engagement is expected to be constructive, respectful, and solutions-oriented. Mohammed believes that this dialogue will result in a clearer shared understanding and resolutions with a pathway that aligns both state-specific priorities and national market sustainability.
It's important to note that the EEDC has initiated a curtailment of power supply to Enugu State by up to 50% in reaction to the tariff adjustment. Such a measure could have serious operational implications, particularly at the TCN-DisCo interfaces where power transfer capacity Service Level Agreements (SLA) are managed.
Mohammed, who is also the Chief Executive Officer (CEO) of NISO, is committed to achieving fair electricity prices, sustainable business operations, and a stable electricity market. This requires dialogue, transparency, and coordination among all relevant institutions.
The intervention meeting was to ensure that no action disrupted the Nigerian electricity market stability, the integrity of contracts, or operational obligations that guaranteed reliable supply. NISO's responsibilities include administering the wholesale electricity market, ensuring compliance with market rules, and upholding contractual obligations. The organisation is also responsible for safeguarding the financial integrity and orderly operation of the market, and for monitoring participants' compliance with operational obligations.
This article was published by NAN and Ese E. Ekama-Williams. The engagement between NISO, the EEDC, and the Enugu State Electricity Regulatory Commission is a significant step towards ensuring a sustainable and reliable electricity supply for all Nigerians.
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