Request for Expression of Interest (EOI) for the Engagement of Technical Auditor for System Operation (SO) and Market Operation (MO) Divisions of the Transmission Company of Nigeria (TCN) at the Nigerian Electricity Regulatory Commission (NERC)

Nigerian Electricity Regulatory Commission (NERC)

Request for Expression of Interest (EOI) for the Engagement of Technical Auditor for System Operation (SO) and Market Operation (MO) Divisions of the Transmission Company of Nigeria (TCN)

(1.0) Introduction

The power sector in Nigeria is based on a “Market Model” where the Transmission Company of Nigeria (TCN) has been assigned the monopoly of three activities: transmission services, system operation and market operation. Market Rules and Grid Code have been developed, taking into account the implementation of the market in phases.

The Electric Power Sector Reform (EPSR) Act, 2005, defines System Operation (SO) as a separate activity that requires a licence but it does not specify a Market Operation (MO) license. The system operation license includes activities of SO and MO. The Market Rules establishes the responsibilities, procedures, standards and criteria that should be followed by the System Operator/Market Operator, as well as its relationship with the other Market Participants.

The Nigerian Electricity Regulatory Commission (NERC) which is established by the EPSR, Act, 2005 is mandated amongst other things, to create, promote and preserve efficient electricity industry and market structures, as well as ensure that regulation is fair and balanced for licensees, consumers, investors and other stakeholders.

In its bid to execute its mandate, the Commission has the responsibility of verifying the licensees’ compliance with licence conditions, the Market Rules and the Grid Code. As part of this responsibility, and pursuant to Rule 13.1 of the Market Rules, the Commission is desirous of engaging the services of a technical auditor for the assignment.

(2.0) Objective

The general objective of this project is to obtain an independent expert assessment of the operational functions and organization of the System Operator/Market Operator, and identify appropriate measures for possible improvements to ensure the reliable and efficient operation of the transmission system, and the electricity market.

(3.0) Scope of Work

The Commission has decided to assign an independent auditor to conduct operational (Technical) audits of TCN activities as System Operator and Market Operator. The purpose of the Audit is to assess the current practices and procedures related to information exchange, economic dispatch, generation and inter-connector scheduling, ancillary services, system reliability, registration of participants, metering, settlement, payment, compared to international practices, the Market Rules and the Grid Code.

It is not within the scope of work to assess the technical functionality of the National Control Centre facilities and infrastructure. However, the work does include assessment of procedures to exchange information relevant to scheduling of generation, imports, exports, system security, Ancillary Services, market administration including payments and their adequacy with the responsibilities assigned to the System Operator / Market Operator.

The work also involves identifying the compatibility or possible differences between the current practices and the conditions, principles and procedures established in the Grid Code.

The basis for the assessment will be:

(i)      Compliance with accepted international best practices in performing similar functions; and

(ii)     Compatibility with the Grid Code, Market Rules and other relevant regulations.

(4.0) Eligibility Criteria

(1)     Evidence of registration with Corporate Affairs Commission

(2)     Current tax clearance certificate for the immediate past three years (2012 – 2014).

(3)     Certificate of VAT registration

(4)     Current Pension Certificate

(5)     Last three (3) years Audited Accounts of the firm duly stamped by a certified Auditor or as applicable.

(6)     Evidence of registration and remittance with the Industrial Training Fund (Amended) Act 2011

(7)     Verifiable evidence of successful completion of similar projects executed in the last five (5) years.

(8)     Evidence of compliance with Financial Reporting Council (FRC) of Nigeria

(9)     Experience/technical qualification of key personnel

(10)   All relevant information concerning contacts, telephone numbers and email addresses etc.

All consultants will be selected in accordance with the procedures set out in the Procurement Act 2007, and the Procurement Procedure Manual published by the Bureau for Public Procurement (BPP) in January 2011.

Submission of Expressions:

Expression of Interest (EOI) must be submitted in three (3) hard copies with one original on or before 2:00pm on 29th July, 2015 with the inscription on the Top left side of the envelopes: “Expression of Interest for Engagement of Technical Auditor for System Operation and Market Operation Divisions of the TCN” and must be dropped into the tenders box located in the Commission’s Secretariat at room 203 2nd floor.

Nigerian Electricity Regulatory Commission (NERC)

Adamawa Plaza

Plot 1099, First Avenue, Off Shehu Shagari Way,

CBD, P.M.B 136, Garki – Abuja

Tel: 09-4621400, 09-4621410, 09-4621409

Website: www.nereng.org e-mail: info@nercng.org

Signed:

Management