The Nigerian Independent System Operator has rejected payment proposals from some electricity distribution companies to settle their outstanding obligations to the Nigerian Electricity Market and service providers.

NISO ‌‍‍‌‌said the proposals were considered unacceptable, particularly given the magnitude and age of the outstanding debts, following a four-day public hearing with the DisCos in Abuja, according to a statement on Sunday.

The hearing, which held between Tuesday and Friday,  was convened to review the outstanding market obligations of the distribution companies and examine proposed arrangements for settling the balances.

A five-member committee chaired by NISO’s executive director (market operations), Edmund Eje, conducted the hearing. The committee also expressed concern over the payment frameworks proposed by some DisCos, describing the plans as inadequate to address their outstanding market obligations.

According to NISO, the federal government had already netted off about 97 per cent of the DisCos’ outstanding obligations incurred between 2015 and 2020.

It said that the committee stressed the need for the affected DisCos to take immediate steps to clear their remaining balances.

The system operator said it would proceed to the next stage of the process, including applying sanctions under the Market Rules. It, however, said that NISO remained committed to constructive engagement, transparency, and due process in resolving the outstanding obligations.

The system operator also said that the hearing provided an opportunity for it to review the outstanding market obligations of the distribution companies.

It said the hearing also examined DisCos’ proposals to liquidate debts that have continued to affect the effective functioning and development of the Nigerian Electricity Market.

(NAN)