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By Daniel Adaji
The Nigerian Independent System Operator (NISO) says it is committed to finding common ground between state-level electricity tariff adjustments and the operational stability of the national electricity market.
Speaking in Abuja, at a stakeholder engagement on tariff adjustment, the Managing Director/CEO of NISO, Engr. A. B. Mohammed, stressed that the meeting was not to undermine the authority of the Enugu State Electricity Regulatory Commission (EERC) or the Enugu Electricity Distribution Company (EEDC), but to safeguard the “delicate balance” of the Nigerian Electricity Supply Industry (NESI).
The session, held at NISO headquarters on Wednesday, brought together representatives of the EERC, EEDC (HoldCo and MainPower), the Nigerian Electricity Regulatory Commission (NERC), the Transmission Company of Nigeria (TCN), and the Nigerian Bulk Electricity Trading Plc (NBET), among others.
The engagement followed an order by the EERC revising electricity tariffs within the state under the provisions of the Electricity Act 2023 (as amended).
In reaction to the order, the EEDC reportedly initiated a curtailment of power supply to Enugu State by up to 50 per cent, a move Mohammed said could “have serious operational implications, particularly at the TCN–DisCo interfaces where power transfer capacity Service Level Agreements (SLA) are managed.”
According to him, such actions also raise “necessary questions about how such decisions interact with the operations, dispatch, commercial arrangements, and financial equilibrium of the Nigerian Electricity Supply Industry as a whole.”
Mohammed explained that NISO’s intervention was grounded in its dual mandates of Market Administration and System Operations, as provided for in the Electricity Act 2023, the Market Rules, and the Grid Code. These include:
Administering the wholesale electricity market and ensuring compliance with market rules; Safeguarding the financial integrity and orderly operation of the market; Convening consultations when matters arise that could materially affect market operations or settlement and monitoring compliance with operational obligations such as dispatch instructions, system reliability, and SLAs on power transfer capacity.
“In simple terms, NISO is responsible for both commercial balance in the market and also for ensuring technical stability and operational compliance — both of which may be affected by the current situation,” he said.
While affirming NISO’s neutrality in the dispute, Mohammed said, “We fully recognize the statutory powers of the Enugu State Electricity Regulatory Commission to regulate activities within its jurisdiction, and equally acknowledge the license and operational responsibilities of the Enugu Electricity Distribution Company in serving its customers.”
He, however, noted that NISO’s statutory role as administrator of the Nigerian wholesale electricity market and quasi-regulator of market operations obliges it to ensure “contractual obligations are respected” and that the system remains financially sustainable and technically reliable for generators, distributors, regulators, and consumers.
“Our objective today is to understand the facts, assumptions, and considerations behind this tariff adjustment; to examine its potential impact on the wider market and on existing contractual frameworks; and to explore, together, how we can harmonize state-level regulatory innovation with the commercial discipline and stability required in the wholesale electricity market,” Mohammed said.
He emphasised that “fair electricity prices, sustainable business operations, and a stable electricity market are not mutually exclusive goals — they are interdependent,” and called for dialogue, transparency, and coordination among all relevant institutions.
The NISO boss expressed confidence that the deliberations would be “constructive, respectful, and solutions-oriented,” and would produce resolutions aligning state-specific priorities with national market sustainability.