TRANSACTION AND INDUSTRY REVIEW
CONFERENCE
NIGERIAN POWER SECTOR REFORM:
AN OVERVIEW OF TCN AGREEMENTS
OUTLINE
• INTRODUCTION
• CONNECTION AND INTERFACE AGREEMENT
• USE OF TRANSMISSION NETWORK AGREEMENT
• ANCILLARY SERVICES AGREEMENT
• CONCLUSION
INTRODUCTION
Applicable contracts:
•
Connection and Interface Agreement (CIA)
•
Use of Transmission Network System Agreement (TUOS)
•
Ancillary Services Agreement (ASA)
CONNECTION AND INTERFACE
AGREEMENT (CIA)
CIA
-
A framework further to which site specific Agreements will be
executed
-
Relates to the rights and obligations of parties to connect to the
Transmission Network System.
-
Executed between TCN as Service Providers and Users of
Transmission Network System.
Applies to user(s) who:
-
-
has a direct connection of at least 11kv network supply; or
-
an export or import capacity of at least 1mw.
CIA CONT’D
Key provisions
• Charges (Clause 7 of the CIA):
-
to be determined periodically between TSP and NERC.
-
payment made on or before end of the first month of a new
calendar year.
-
Payment shall be made once annually or as agreed by
parties.
CIA CONT’D
• Right of access (Clause 11)
-
unhindered access granted to equipment of another party upon
reasonable notification (except in emergencies).
- This right extends to nominated third parties and contractors.
• Commercial and tariff metering (Clause 22 )
-
Shall be exclusively for registering the quantity of energy that passes
across the connection point.
-
Only NERC licenced personnel are authorised to install, operate and
maintain such meters.
CIA CONT’D
• Interface management
Parties to jointly nominate an interface manager to oversee the implementation and maintenance of the
interface management on the connection site.
• Other key provisions
-
Connection and energisation,
Metering
Modifications
Operational metering
Restriction on title holders right
Relocation
De-energisation and disclosure
Decommissioning
Dispute Resolution.
USE OF TRANSMISSION NETWORK
AGREEMENT (TUOS)
 TUOS
•
Relates to the rights and obligations of parties arising from
the use of the Transmission Network System.
•
Applies to user(s) whose equipment has:
–
a direct connection of at least 11kV network supply; or
–
an export or import capacity of at least 50 kV A.
TUOS CONT’D
Key provisions of TUOS
• Charges (Clause 8)
Right to use arises only upon payment of the Transmission Network
Charge.
-
- The charge shall be an annual payment prorated on a monthly basis.
- Based on agreement of parties it may also include one-off charges.
- The User is mandated to provide a security cover which will be resorted
to in the event of User’s default.
- The security cover shall be determined and approved by NERC.
TUOS CONT’D
• Safety Rules (Clause 13):
-
Parties mandated to provide copies of their safety rules and local safety
instructions to each other.
-
The SO and User are mandated to each appoint a Safety
Coordinator
oversee safety precautions whenever work on
the network
to
• De-energisation & disconnection (Clause 14):
-
material breach by a User that will entitle the TSP to de-energise the User’s
apparatus.
-
If the breach is not remedied for a period of 6 months, TSP may declare such
breach an event of default which may lead to termination and disconnection
of the User’s apparatus.
TUOS CONT’D
• Assignment and sub-contracting (Clause 26):
Assignment by parties of rights and obligations must first be
approved by both NERC and the other party.
-
-
TCN has the right to novate its rights and obligations to an
Independent System Operator.
• Other key provisions:
-
Operations
Right of access
Dispute resolution
Terms and termination
Force majeure
PRE-TRANSITION RESERVE AND
FREQUENCY CONTROL CONTRACT
(ANCILLARY SERVICES AGREEMENT)
ANCILLARY SERVICES AGREEMENT
–
Relates to the provision of certain ancillary services that are key to
overall system stability.
–
These services include:
• Operating reserve
• Frequency regulation
• Voltage regulation
• Black start capability
- Grid Code mandates the SO to procure the above ancillary services.
- The SO is the buyer and the Service provider is the seller of the
ancillary service.
ANCILLARY SERVICE AGREEMENT CONT’D
Key provisions of ASA
-
Reserve capability
Reserve instruction
Operational information flow
Burden of proofFrequency control
Price Reserve provided
Taxes
Payment
CONCLUSION
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