• Say regulator dabbling in internal admin of utilities, deterrent to investors
•DisCos with market debts left with 15% of residual revenue for OPEX
Electricity Distribution Companies (DisCos) have expressed strong reservations over a new regulatory order issued by the Nigerian Electricity Regulatory Commission (NERC), arguing that the directive goes beyond the commission’s statutory oversight role by effectively taking control of how privately owned utilities deploy their revenues.
The opposition comes amid the implementation of Order No. NERC/2026/062, which came into effect on July 1, 2026, requiring DisCos to establish dedicated Capital Expenditure (CapEx) Provision Accounts into which a substantial portion of their residual revenues must be paid after settling upstream market invoices and administrative operating expenses.
Although NERC said the measure was designed to ensure greater investment in electricity distribution infrastructure, improve service quality and strengthen financial discipline within the Nigerian Electricity Supply Industry (NESI), industry operators contend that the order amounts to regulatory overreach and could undermine the financial viability of the distribution companies.
