By SUNDAY ABBA, Abuja
The Nigerian Independent System Operator (NISO) has convened a stakeholder dialogue aimed at re-examining the recent tariff review order issued by Enugu Electricity Regulatory Commission (EERC) in the state which raised concerns among stakeholders, with view to resolving it in the interest of the whole sale electricity market.
Welcoming the participants at a Stakeholder Engagement on Tariff Adjustment in Enugu State by the Enugu
State commission in his opening remarks, NISO’s Managing Director and Chief Executive Officer (MD/CEO) Engr A. B. Mohammed explained that the roundtable targeted clear understanding of the implications of the tariff adjustment to ensure that it does not distabilise the larger market.
He said, “We are meeting today in light of the recent order issued by the Enugu State Electricity Regulatory Commission revising the electricity tariff within Enugu state. This development, while within the remit of state-level regulatory authority under the Electricity Act 2023 (as amended), has naturally drawn significant attention from different quarters of our industry.
“Notably, we have received communication from the Enugu Electricity Distribution Company indicating that, in reaction to the tariff adjustment, they initiated curtailment of power supply to Enugu State by up to 50%.
“Such a measure, if implemented, could have serious operational implications, particularly at the TCN–DisCo interfaces where power transfer capacity Service Level Agreements (SLA) are managed.
“It has also prompted 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.
“Our role in convening this discussion is grounded in both our market administration and system operations mandates through the instrumentality of the Electricity Act 2023, the Market Rules and the Grid Code which:
Empowers the Market Operator to administer the wholesale electricity market, ensure compliance with market rules, and uphold contractual obligations
Mandates us to safeguard the financial integrity and orderly operation of the market.
Requires us to convene consultations when any matter arises that could materially affect market operation or settlement.
Assigns NISO responsibility for monitoring participants’ compliance with operational obligations, including dispatch instructions, system reliability, and service level agreements on power transfer capacity at TCN–DisCo interfaces.
“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. Hence this intervention meeting is to ensure that no action disrupts the Nigerian electricity market stability, the integrity of contracts, or operational obligations that guarantee reliable supply.”
The MD assured the stakeholders that NISO would approach this discussion with neutrality, respect, and an open mind.
Speaking further, he said, “We are not here to question the authority of the Regulator or the Operators. 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.
“However, NISO has a distinct statutory role as the administrator of the Nigerian wholesale electricity market and a quasi-regulator of market operations. Our mandate obliges us to safeguard the integrity of the market settlement framework, ensure contractual obligations are respected, and maintain the delicate balance that allows every participant — from Generators to Distributors, from Regulators to Consumers — to operate in a financially sustainable and technically reliable environment.
“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 harmonise state-level regulatory innovation with the commercial discipline and stability required in the wholesale electricity market.
“We believe that fair electricity prices, sustainable business operations, and a stable electricity market are not mutually exclusive goals — they are interdependent. Achieving all the three requires dialogue, transparency, and coordination among all relevant institutions.
“I am confident that with the depth of expertise gathered here, our deliberations today will be constructive, respectful, and solutions-oriented. At the end of this engagement, we should have a clearer shared understanding and resolutions with pathway that aligns both state-specific priorities and national market sustainability.”
NISO was established as part of the Electricity Act (EA) 2023 to manage Nigeria’s electricity grid, ensuring reliability, transparency, and efficiency. The organization aims to create a sustainable and competitive power sector to drive economic growth.