The House of Representatives Committee on Power has charged electricity distribution companies (DisCos) with outstanding market obligations to take urgent steps to clear their debts, stressing that improved liquidity is critical to strengthening the electricity market and ensuring the sustainability of the power sector.
Committee chairman, Victor Nwokolo, made the remarks during an oversight visit to Nigerian Independent System Operator (NISO) headquarters in Abuja, where the lawmakers witnessed a public hearing on the outstanding market obligations of the DisCos.
The hearing, chaired by NISO’s Executive Director, Market Operations, Engineer Edmond Eje, formed part of the Company’s ongoing engagements with selected DisCos over outstanding market obligations, events of default and other compliance matters under the Nigerian Electricity Market.
The affected DisCos are Benin Electricity Distribution Company (BEDC), Enugu Electricity Distribution Company (EEDC), Ibadan Electricity Distribution Company (IBEDC), Jos Electricity Distribution Company (JEDC), Kaduna Electricity Distribution Company (KAEDCO), Port Harcourt Electricity Distribution Company (PHEDC) and Kano Electricity Distribution Company (KEDCO).
Nwokolo, who expressed concern over the accumulation of market debts by the affected DisCos, said prolonged failure to meet financial obligations could adversely affect the liquidity and sustainability of the electricity market and called on the DisCos to make every effort within their capacity to settle their outstanding obligations and strengthen compliance with the rules governing the electricity market.
The Managing Director/Chief Executive Officer, Engineer Abdu Bello Mohammed, commended the Committee for its oversight role and continued support for reforms in Nigeria’s electricity sector.
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He noted that the establishment of NISO was a significant outcome of the reforms introduced under the Electricity Act, 2023, which provided the framework for the unbundling of the Transmission Company of Nigeria (TCN) and the establishment of an independent system operator.
The NISO chief briefed the Committee on the operator mandate, its comprehensive five-year development plan designed to guide the organisation’s efforts towards strengthening system operations, improving electricity market operations, enhancing system planning and supporting the effective coordination of Nigeria’s power system.
He also highlighted the importance of collaboration between the National Assembly, NISO and other institutions within the Nigerian Electricity Supply Industry in addressing the structural and financial challenges confronting the sector.
Engineer Mohammed, while commending the Committee for lending its voice to the issue of market defaults by DisCos, said improved liquidity across the electricity market would strengthen the capacity of market participants to meet their obligations, sustain operations and ultimately contribute to improved service delivery to electricity consumers.
He, however, appealed for continued support and constructive oversight from the National Assembly, noting that sustained collaboration among the various institutions in the sector remains critical to strengthening the electricity market, stabilising the national grid and advancing efforts towards a more reliable and sustainable electricity supply in Nigeria.
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