NERC gives DisCos fresh technical, commercial, reporting obligations
By Martha Godwin
Electricity Distribution Companies (DisCos) across Nigeria have been directed to comply with new technical, commercial, and reporting requirements following the implementation of the Nigerian Electricity Regulatory Commission’s (NERC) Net Billing Regulations 2026.
The new regulation seeks to promote the adoption of renewable energy and enable consumers with solar energy systems and other renewable power installations to feed surplus electricity into the national grid.
Under the guidelines, customers intending to connect renewable energy systems through the net billing scheme must submit applications to their respective DisCos, accompanied by relevant technical and ownership documentation.
Required documents include proof of ownership or occupancy of the property, a certified single-line diagram of the proposed grid connection indicating switching and protection mechanisms, as well as detailed technical specifications of the renewable energy system.
For existing renewable energy installations, applicants must also provide available generation or performance records, previous approvals or registration certificates, projected annual power generation capacity, information on energy storage facilities, and a certified inspection report confirming compliance with safety and regulatory standards.
The regulations place considerable responsibilities on DisCos, especially regarding the assessment and approval of grid interconnection requests.
Upon receiving a complete application, a distribution company is expected to carry out a technical evaluation of its network and communicate its decision within 15 days. NERC noted that this requirement is intended to ensure the safe integration of renewable energy systems while preserving the reliability and stability of the electricity distribution network.
In addition, DisCos are required to provide net meters once customers have fulfilled all applicable connection payment obligations.
These meters must be capable of accurately recording electricity imported from the grid as well as excess energy exported to it.
According to NERC, approved metering devices must either be revenue-grade import/export meters or dual-register smart meters that comply with the national metering code and possess time-of-use functionality.
Where time-of-use meters are not available at the time of commissioning, DisCos may temporarily install NEMSA-certified bidirectional meters, provided they obtain prior approval from the commission.
Regarding billing and settlement, distribution companies are now obligated to issue comprehensive monthly statements to prosumers—customers who both consume and generate electricity.
The statements must clearly show electricity imported and exported in kilowatt-hours, applicable import and export tariffs, monthly charges and credits in naira, carried-forward credit balances, and the final net amount payable for the billing period.
Furthermore, the regulations require DisCos to maintain separate accounting records for prosumer credits and reconcile these balances every month.
One of the most significant aspects of the new framework is the extensive reporting obligation imposed on distribution companies.
Under the regulations, DisCos must keep accurate and up-to-date records of all approved net billing installations within their coverage areas, publish quarterly statistics on approved systems, and submit periodic reports detailing applications received, approved, rejected, or awaiting processing.
They are also required to disclose network enhancement and upgrade projects undertaken to facilitate the integration of net billing systems within their operational networks.