NERC Gives Kaduna DisCo One Year to Cut Losses

• NERC gives Kaduna DisCo one year to overhaul operations and return to sustainable growth path.
• High technical and commercial losses, significant metering deficit identified as immediate priorities.
• Newly constituted interim board tasked with implementing changes within 12 months.
• BPE urges new management to take advantage of existing metering programmes to address gap.

The Nigerian Electricity Regulatory Commission has tasked the newly constituted Interim Board of Special Directors of Kaduna Electricity Distribution Plc with implementing immediate interventions to reset the utility company and restore it to a sustainable growth trajectory within 12 months.

The Nigerian Electricity Regulatory Commission (NERC) has given the Kaduna Electricity Distribution Plc (Kaduna DisCo) a one-year ultimatum to overhaul its operations and return to a sustainable growth path. The directive was issued by NERC Chairman, Musiliu Oseni, who emphasized that immediate interventions are necessary to address high technical and commercial losses, as well as a significant metering deficit. This intervention comes after repeated failures by the DisCo to meet market obligations and prescribed performance benchmarks. The newly constituted interim board of Kaduna DisCo has been tasked with implementing these changes within 12 months.

The NERC's Order No. NERC/2026/086, which dissolved the previous Board of Directors of KAEDC, marked a significant development in the regulatory landscape of the electricity distribution sector. The commission subsequently appointed a seven-member Interim Board of Special Directors for an initial one-year period, with Abdullahi Garba as chairman. This move reflects the regulator's efforts to address the systemic issues plaguing the DisCos and ensure their financial sustainability. The BPE has also urged the new management to take advantage of existing metering programmes to address the significant metering deficit across KAEDC's franchise area.

The Kaduna DisCo's turnaround plan is crucial for the entire electricity distribution sector, where poor metering, energy theft, inadequate revenue collection, and technical losses continue to undermine financial sustainability. The success of this intervention will have far-reaching implications for the industry as a whole, making it essential for lawyers and compliance officers to monitor the DisCo's progress closely. As the regulator intensifies its intervention in the Kaduna DisCo, stakeholders must remain vigilant and adapt to any changes that may impact their businesses or investments in the electricity sector.

Lawyers and compliance officers should monitor the Kaduna DisCo's progress in addressing its high technical and commercial losses, significant metering deficit, and poor revenue collection, as these issues may impact their clients' businesses or investments in the electricity sector.

Source: Original reporting via The Nigerian Tribune