The Nigerian Independent System Operator, NISO, has intervened in the tariff adjustment carried out by Enugu State Electricity Regulatory Commission (ESERC), with a view to finding a common ground to resolve the crisis amicably.
Speaking at the stakeholders meeting convened by NISO on Wednesday in Abuja, the Managing Director/CEO of the agency, Engr. A. B. Mohammed, noted that the intervention meeting aimed to ensure that no action disrupts the Nigerian Electricity Market stability and the integrity of contracts, or operational obligations that guarantee reliable supply
In attendance at the meeting were the Chairman of the Enugu State Electricity Regulatory Commission, Management of the Enugu Electricity Distribution Company (HoldCo and MainPower), NERC, TCN, NBET and BPE, among others.
Engr. Mohammed explained further that NISO will not question the authority of the Regulator or the Operators, but to exercise its distinct statutory role as the administrator of the Nigerian wholesale electricity market and a quasi-regulator of market operations
According to him, the meeting was convened in response to the recent order issued by the Enugu State Electricity Regulatory Commission revising the electricity tariff within Enugu state.
He said that while the reversal was within the remit of state-level regulatory authority under the Electricity Act 2023 (as amended), it has attracted significant attention from different quarters of the 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 instrumentalities of the Electricity Act 2023, the Market Rules and the Grid Code, which empower 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.
“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.
The intervention meeting, he said, is to ensure that no action disrupts the Nigerian Electricity Market stability, the integrity of contracts, or operational obligations that guarantee reliable supply.
“Let me be clear from the outset: NISO approaches this discussion with neutrality, respect, and an open mind. We are not here to question the authority of the Regulator or the Operators.
“We fully recognise 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 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 a pathway that aligns both state-specific priorities and national market sustainability “, he said.
