Abuja: Mr Abdu Mohammed, the Managing Director of the Nigerian Independent System Operator (NISO), has called for a collective commitment to develop a resilient, sustainable, and fair electricity sector. Mohammed, who is also the CEO of NISO, emphasized this during a stakeholder engagement with NISO Management on tariff adjustment for customers in Enugu State.
According to News Agency of Nigeria, Mohammed addressed the recent order by the Enugu State Electricity Regulatory Commission to revise the electricity tariff within the state. This decision, while within the state’s regulatory authority under the Electricity Act 2023 (as amended), has attracted significant attention from various industry stakeholders. The Enugu Electricity Distribution Company responded by indicating it would reduce the power supply to the state by up to 50 percent, a measure that could have serious operational implications, especially around power transfer capacity Service Level Agreements (SLA) at the TCN-DisCo interfaces.
Mohammed highlighted that the situation raises important questions about the interaction of such decisions with the overall operations, dispatch, commercial arrangements, and financial balance of the Nigerian electricity supply industry. He noted that NISO’s role in convening the discussion was rooted in their market administration and system operations mandates as outlined in the Electricity Act 2023, market rules, and grid code. These mandates empower NISO to oversee the wholesale electricity market, ensure compliance with market rules, and maintain contractual obligations.
The managing director emphasized NISO’s responsibility for both market balance and technical stability, which could be affected by the current situation. The intervention meeting aimed to prevent disruptions to the stability of the Nigerian electricity market, the integrity of contracts, or operational obligations essential for reliable supply.
Mohammed reiterated that NISO approached the discussion with neutrality and respect, acknowledging the authority of the Enugu State Electricity Regulatory Commission and the operational responsibilities of the Enugu Electricity Distribution Company. He stated that NISO’s statutory role involves safeguarding the market settlement framework and ensuring a financially and technically reliable environment for all participants.
The meeting aimed to understand the considerations behind the tariff adjustment, examine its potential impact on the wider market and existing contractual frameworks, and explore harmonizing state-level regulatory innovation with the commercial discipline needed in the wholesale electricity market. Mohammed expressed confidence that through dialogue, transparency, and coordination among all relevant institutions, a balance of fair electricity prices, sustainable business operations, and market stability could be achieved.
He concluded by expressing optimism that the gathered expertise would lead to constructive, respectful, and solutions-oriented deliberations, resulting in a shared understanding and resolutions that align both state-specific priorities and national market sustainability.