NISO Threatens To Impose Sanctions Against DisCos Over Prolonged Indebtedness To NESI

The Nigeria Independent System Operator (NISO) has threatened to invoke applicable sanctions against electricity Distribution Companies (DisCos) still reluctant to liquidate its outstanding financial obligations to the Nigeria Electricity Supply Industry (NESI).

NISO gave the threat in a recent meeting with the DisCos, citing that already the Federal Government had offset a larger chunk of their respective indebtedness between the years 2015-2020.

According to NISO, the Federal Government had magnanimously netted off approximately 97 per cent of the DisCos’ outstanding obligations for the period 2015–2020.”

It consequently stressed the need for the affected DisCos to take immediate steps towards liquidating their remaining balances, adding that it ” will therefore proceed with the next steps including the application of applicable sanctions as provided under the Market Rules.”

Meanwhile, NISO assured maintaining its commitment to constructive engagement, transparency and due process.

The meeting provided an opportunity for NISO to review the outstanding market obligations of the DisCos and examine payment arrangements aimed at addressing balances that have continued to impede the effective functioning and development of the Nigerian Electricity Market.

The hearing meeting conducted by a five-member committee was chaired by the Executive Director, Market Operations, Engr. Dr. Edmund Eje, who  expressed concern over the proposed payment frameworks presented by some DisCos for the liquidation of their outstanding market obligations.

The engagement underscores the critical importance of market discipline, compliance and accountability among market participants, as well as continued collaboration in strengthening market confidence and ensuring the sustainability and effective functioning of the Nigerian electricity market.