…says the tariff cut if implemented, could have serious operational implications.
ABUJA, NIGERIA – The iNews Times | The Nigerian Independent System Operator (NISO) has strongly criticised the recent decision by the Enugu State Electricity Regulatory Commission (EERC) to slash electricity tariffs, warning that the move could disrupt the country’s entire power market.
At a stakeholders’ meeting in Abuja, NISO Managing Director/CEO, Engr Abdul Mohammed, said the intervention was necessary to prevent actions that might compromise the stability of the Nigerian Electricity Supply Industry (NESI), the integrity of existing contracts, and the operational obligations that ensure reliable power supply.
“Such a measure, if implemented, could have serious operational implications, particularly at the Transmission Company of Nigeria (TCN)/distribution companies (DisCos) interfaces where power transfer capacity service level agreements are managed,” Mohammed warned.
He stressed that the tariff slash could interfere with market operations, dispatch processes, commercial arrangements, and the financial balance of the entire electricity supply chain.
According to Mohammed, NISO’s mandate under the Electricity Act 2023, the market rules, and the grid code is to administer the wholesale electricity market, ensure compliance with regulations, and uphold contractual agreements. “Our mandate is to safeguard the financial integrity and orderly operation of the market,” he said, noting that the operator also monitors compliance with operational obligations, dispatch instructions, system reliability, and service level agreements at TCN–DisCo interfaces.
While acknowledging the EERC’s statutory authority to regulate within its jurisdiction and the Enugu Electricity Distribution Company’s (EEDC) role in serving its customers, Mohammed emphasised NISO’s responsibility to protect the settlement framework and maintain market balance.
“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,” he said.
Mohammed outlined the meeting’s objectives as understanding the rationale for the tariff adjustment, assessing its market-wide impact, and finding ways to harmonise state-level regulatory initiatives with the commercial discipline required in the national wholesale 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 three requires dialogue, transparency, and coordination among all relevant institutions,” he concluded.
