NERC orders private grid substations to obtain permits within 45 days

By Uche Usim

The Nigerian Electricity Regulatory Commission (NERC) has directed owners of private transmission substations connected to the national grid to obtain regulatory permits within 45 days, as part of efforts to tighten oversight and improve the reliability of Nigeria’s power network.

The directive, contained in Order No. NERC/2026/013 which took effect on March 9, 2026, establishes a new regulatory framework for privately owned transmission substations serving bulk electricity consumers.

NERC disclosed the move in a public notice issued on Wednesday via its verified X handle, stating that the measure was designed to strengthen supervision of privately operated grid infrastructure.

According to the commission, the order mandates owners of such facilities to obtain an Independent Electricity Transmission Network Operator (IETNO) Permit before operating or connecting their substations to the national grid.

The regulator explained that the decision followed frequent transmission line trips reported by the Nigerian Independent System Operator (NISO), which have raised concerns over grid safety and operational visibility.

Under the directive, NISO has been instructed to compile and submit to NERC a comprehensive list of all existing Private Transmission Substation Owners (PTSOs). The system operator must also notify them of the new regulatory requirements within five days.

Existing PTSOs are required to apply for the IETNO permit within 45 days of the order taking effect, while new operators must secure the permit before connecting their facilities to the grid. Failure to comply with the directive will attract regulatory sanctions.

As part of the compliance framework, NISO will also deploy Internet of Things (IoT)-based metering systems at substation interconnection points within 120 days to strengthen monitoring and data transparency.

“Operators must submit monthly operational reports, while NISO will conduct inspections to ensure compliance.

“Overall, the Order aims to enhance grid stability, regulatory oversight, and compliance with the Grid Code in the Nigerian Electricity Supply Industry,” the statement said.

The development comes amid broader regulatory actions by NERC aimed at improving accountability in the electricity market.

Recently, the commission directed electricity distribution companies (DisCos) to refund a total of N20.33 billion to customers who procured meters under the Meter Asset Provider (MAP) scheme.

The directive, issued in a document dated March 1, 2026, titled “Amended Order on the Reimbursement of Meter Costs,” requires DisCos to fully repay affected customers within 12 months beginning from March 1, 2026.

NERC said the measure was intended to streamline the reimbursement process, enhance customer notification systems, and rebuild consumer confidence in the power sector.

Nigeria’s electricity market involves multiple players across generation, transmission and distribution.

While generation and distribution companies were privatised in 2013, the Transmission Company of Nigeria (TCN) remains government-owned and is responsible for transmitting electricity generated by power plants to distribution networks nationwide.