1. TRANSACTION AND INDUSTRY REVIEW CONFERENCE NIGERIAN POWER SECTOR REFORM: AN OVERVIEW OF TCN AGREEMENTS

2. OUTLINE INTRODUCTION CONNECTION AND INTERFACE AGREEMENT USE OF TRANSMISSION NETWORK AGREEMENT ANCILLARY SERVICES AGREEMENT CONCLUSION

3. INTRODUCTION Applicable contracts: Connection and Interface Agreement (CIA) Use of Transmission Network System Agreement (TUOS) Ancillary Services Agreement (ASA)

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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 to oversee safety precautions whenever work on the network 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.

11. 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 -

12. 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.

13. ANCILLARY SERVICE AGREEMENT CONT’D Key provisions of ASA -Reserve capability -Reserve instruction -Operational information flow -Burden of proof- -Frequency control -Price - -Reserve provided -Taxes -Payment

14. CONCLUSION THANK YOU