Despite DisCos’ Protest, NERC Pushes Forward with New OpEx Spending Order
Slashes operational funding for utilities to 40% by 2027 Pegs debt-free DisCos’ CapEx accounts remittance at 60% Power distributors insist regulator micromanaging private entities Emmanuel Addeh in Abuja Despite protests by Electricity Distribution Companies (DisCos), the Nigerian Electricity Regulatory Commission (NERC) has proceeded with a revised framework that will progressively restrict the…
Despite objections from Electricity Distribution Companies (DisCos), the Nigerian Electricity Regulatory Commission (NERC) has moved ahead with a new framework that will gradually limit the amount of surplus operational revenue these utilities can use at their discretion. Under the new Order No: NERC/2026/062A, debt-free DisCos will be allowed to retain half of their non-administrative Operating Expenditure (OpEx) for operational purposes between August 2026 and January 2027, with the other half directed to Capital Expenditure (CapEx) Provision Accounts.
From February 2027, this figure will drop to 40 percent of OpEx being transferred to CapEx, while 60 percent will need to be allocated to CapEx for approved investments. However, the revised order has faced strong opposition from some DisCos, who argue that NERC is encroaching on the financial and operational management of privately owned companies.
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