NERC gives DisCos fresh technical, commercial, reporting obligations

By Martha Godwin

Electricity Distribution Companies (DisCos) in Nigeria have been mandated to implement fresh technical, commercial and reporting obligations following the introduction of the Nigerian Electricity Regulatory Commission’s (NERC) Net Billing Regulations 2026.

The regulation is designed to deepen renewable energy integration and allow electricity consumers with solar power systems and other renewable energy installations to export excess electricity to the national grid.

Under the new framework, customers seeking to connect renewable energy systems under a net billing arrangement are required to submit applications to their respective distribution companies alongside specified technical and ownership documents.

These include proof of ownership or occupation of the premises, a certified single-line diagram of the proposed interconnection showing switching and protection systems, and technical specifications of the renewable energy installation.

For already existing systems, applicants are additionally required to provide generation history or performance data where available, previous approvals or registration documents, projected annual electricity generation capacity, details of energy storage systems, and a certified inspection report confirming safety and compliance with applicable standards.

The regulation places significant responsibilities on DisCos, particularly in evaluating and approving applications for grid interconnection.

Upon receiving a complete application, a DisCo is expected to conduct a technical feasibility assessment of its distribution network and communicate approval or rejection within 15 days.

According to NERC, this process is aimed at ensuring the safe integration of renewable energy systems without compromising the stability and reliability of the electricity network.

The regulations also make DisCos responsible for providing net meters after customers have paid the required connection charges.

The meters must be capable of measuring electricity imported from the grid as well as electricity exported to it.

NERC stated that approved meters must either be revenue-grade import/export meters or dual-register smart meters compliant with the national metering code and equipped with time-of-use functionality.

However, where time-of-use meters are unavailable during commissioning, distribution companies may temporarily deploy NEMSA-certified bidirectional meters, subject to prior approval by the commission.

In terms of billing and settlement, DisCos are now required to issue detailed monthly bills to prosumers — customers who both consume and generate electricity.

The bills must clearly indicate energy imported and exported in kilowatt-hours, applicable import and export tariffs, monthly charges and credits in naira, carried-forward credit balances, and the net payable amount for the billing cycle.

The regulation further mandates DisCos to maintain dedicated accounting ledgers for prosumer credits and reconcile such balances on a monthly basis.

In what appears to be one of the most far-reaching provisions, the new framework imposes extensive reporting obligations on distribution companies.

Under the regulation, DisCos must maintain accurate and updated registers of all approved net billing installations within their franchise areas, publish quarterly data on approved systems, and provide periodic reports on applications received, approved, rejected, or pending.

They are also expected to disclose network upgrade projects undertaken to support net billing integration across their operational areas.

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