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Urges Collaborative Action Towards a Robust Electricity Sector, According to NISO

Urging collaborative efforts, Abdu Mohammed, the Managing Director of the Nigerian Independent System Operator (NISO), emphasizes the necessity for a robust and resilient electrical grid system.

Urges unified action towards a robust and resilient electrical system industry
Urges unified action towards a robust and resilient electrical system industry

Urges Collaborative Action Towards a Robust Electricity Sector, According to NISO

In a recent stakeholder's engagement, Abdu Mohammed, the Managing Director of the Nigerian Independent System Operator (NISO) and CEO of NISO, addressed the issue of tariff adjustment for customers in Enugu State.

Mohammed's objective was to understand the facts, assumptions, and considerations behind the tariff adjustment, examine its potential impact on the wider market, existing contractual frameworks, and explore harmonization of state-level regulatory innovation with the commercial discipline and stability required in the wholesale electricity market.

According to Mohammed, achieving these goals would require constructive, respectful, and solutions-oriented deliberations among all relevant institutions. He emphasised that NISO's mandate includes safeguarding the integrity of the market settlement framework, ensuring contractual obligations are respected, and maintaining a balance that allows all market participants to operate in a financially sustainable and technically reliable environment.

NISO's responsibilities also include monitoring participants' compliance with operational obligations, including dispatch instructions, system reliability, and service level agreements on power transfer capacity at TCN-Disco interfaces. Such curtailment could have serious operational implications, particularly at TCN-DisCo interfaces.

The Enugu Electricity Distribution Company has initiated a 50% power supply curtailment in response to the tariff adjustment. This move may affect the commercial balance and technical stability of the Nigerian electricity market.

Mohammed acknowledged the statutory powers of the Enugu State Electricity Regulatory Commission and the licence and operational responsibilities of the Enugu Electricity Distribution Company. However, he believed that fair electricity prices, sustainable business operations, and a stable electricity market are interdependent goals that require dialogue, transparency, and coordination among all relevant institutions.

At the end of the engagement, Mohammed expected to have a clearer shared understanding and resolutions with a pathway that aligns both state-specific priorities and national market sustainability.

It is important to note that NISO's role does not extend to the 150,000 rail clips lost to vandalism, which was a separate news item published by the same source. The search results do not provide information about other participants in the intervention hosted by Mr. Abdu Mohammed, Managing Director of the Nigerian Independent System Operator, nor their positions on tariff adjustment in Enugu State.

In conclusion, Mohammed's address highlighted the importance of a collaborative approach to maintaining a stable and sustainable electricity market in the face of tariff adjustments and operational challenges. The dialogue initiated by Mohammed is expected to continue, with the aim of finding solutions that benefit all stakeholders.

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