In another milestone event in the power industry transformation process, the Nigerian Electricity Regulatory Commission (NERC) has issued two operational licenses; the Transmission Service Provider (TSP) and System Operations (SO) licences to TCN.

The Commissioner (Legal, Licensing & Enforcement), Dr. Steven Andzenge, MON, on behalf of the NERC Chairman presented the two licences to the MD/CEO of TCN, Mr. Mack Kast, at the NERC Corporate Headquarters, Abuja. He noted that the licensing process of TCN started when the company was formally issued one licence but because of regulatory developments, TCN was required to surrender the licence so as to be issued two separate licences which is in consonance with international best practice.

In an address, the General Manager (LL & E), Mrs. Olufunke Dumeh gave a brief background of the licences and the processes leading to their issuance.

TCN, she said, was granted a transmission licence in January 2010 to engage in Transmission Service Provider, System Operations and Market Operation services. However, NERC being mindful of the fact that the EPSR Act envisages the separation of the TSP & SO functions, with MO ring -fenced in System Operations, retrieved TCN licence for the award of two licences.

The exercise she continued will ensure the ring- fencing of Market Operations and System Operations office from the Transmission Service Provider functions of TCN, a move towards financial autonomy for both companies considered important participants in the Nigeria Electricity Supply Industry (NESI).

She further noted that the TSP licence is for operating the transmission infrastructure, while the SO licence is for implementation of the Grid Code & Market Rules. Although the SO licence will include Market Operations responsibilities, the MO’s office will be ring fenced such that both companies will however remain embedded within the organizational structure of TCN until the creation of an Independent System Operator (ISO).

NERC charged TCN to comply with the terms and conditions that go with the certificates, acknowledging that the role of the TSP, SO and MO are very vital in the power sector.

Receiving the TSP and SO licences on behalf of the management of TCN, the MD/CEO of TCN, Mr. Mack Kast expressed satisfaction with the licences, saying that this is a defining moment for the power sector and TCN. TCN, he added, has continued to metamorphose from NEPA through PHCN, to one of the successor companies of PHCN, and presently to the licensing of TSP & SO. Discussions, he revealed are already on, to move the SO to the next stage of creating the Independent System Operator (ISO)

He expressed delight and support for the process noting that the issuance of both licences is a continuation of the spectrum in terms of moving along in trying to get where we ought to be in the sector.

In attendance at the brief ceremony were the NERC Acting Head of Licensing and Enforcement, Mrs. Uwakwe Azikiwe; TCN General Manager (Secretary / Legal), Mrs. Fatima Lawan Muhtar; GM (Public Affairs), Mrs. Seun Olagunju and Principal Manager (Public Affairs), Mrs Ndidi Mbah.