The Nigerian Independent System Operator (NISO) is expected to manage energy load without political consideration or interference for it to function effectively.
It is also expected to live above the issue of independence and market discipline which drew back the Transmission Company of Nigeria (TCN) that ran its three arms.
An expert in the sector and the ex- Abuja Electricity Distribution Company (AEDC), Public Affairs, General Manager, Mr. Oyebode Fadipe, made this known to reporters on phone at the weekend.
According to him, the NISO is now expected to operate as a private firm.
He said: “What we therefore have now is a situation where the NISO can manage the load in such a manner that it will manage the load in the most efficient manner instead of giving room for political issues before taking decisions. The NISO is supposed to be a full fledged company that runs like a private entity.”
Recall that in line with the provisions of the Electricity Act, 2023 and pursuant to the Order of the Nigerian Electricity Regulatory Commission (NERC) dated 30th April 2024, with effect from 1st May 2024, the NISO was established.
President Bola Ahmed Tinubu on March 19, he also approved the appointment of Dr. Adesegun Akin-Olugbade as the board chairman and Engr. Abdu Mohammed as the Managing Director.
Vice President Kashim Shettima inaugurated the pioneer board and management of the NISO last week.
Fadipe, who is now the Sage Consulting, Lead Power Sector Analyst, explained that for the first 10 years of the privatised power sector, three institutions were put under the headship of the TCN Managing Director partly because it was a period of learning.
He added that it was also because two of these institutions could be managed by one Chief Executive Officer.
According to him, that way, cost was managed as every cost in the Nigerian Electricity Supply Industry (NESI) is a pass through cost.
He however noted that “It is the end user that bears the brunt ultimately.”
Fadipe said the institutions are the load management, which is the product; the equipment which are the towers, lines & some other equipment and; the Market Operator.
He said it made and continues to make a lot is sense to run the system that way. But it was not without its own challenges.
According to him, “For instance, the issue of independence & market discipline was largely impeded with TCN running the three arms.
“ A privatised NESI was therefore in need of an independent System Operator that will be able to manage the load with little or no interference.
“If it runs that way, then we are on the right path.”
Continuing, he said by bringing out NISO, it is also a move in the full privatisation of TCN, which market participants have clamoured for in the past.
Leaving the situation to time to tell, he said “All said, let us see whether NISO will improve efficiency or function as another drain on the economy.”
Similarly, speaking with the press, the Electricity Consumer Protection Advocacy Centre (EPAC), Executive Director, Chief Princewill Okorie said the NISO cannot be independent of the TCN in reality because it is made up of staff of the company that have not changed overnight.
He was of the view that since the staff of the TCN staff would operate the NISO, it would remain a mere change of name.
Okorie insisted that for NISO to truly severe from TCN, the Federal Government should have engaged staff outside the company.
According to him, the TCN would prefer those who can cover its track in the NISO.
His words: “The change of name does not change anything from TCN. The staff are still TCN staff. They are not from the moon so the NISO success is doubtful.”
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