In the thrilling world of the Nigerian Electricity Supply Industry (NESI), where voltage meets regulation and everyone wants a prepaid meter, there exists a special class of electricity users known as Maximum Demand (MD) customers. These are the big guys: consumers whose load capacity hits 45kVA and above.
If your premises guzzles this much power, congratulations! You’re officially an MD customer. That status comes with certain perks (like mandatory metering—no more guesswork or estimated billing) and, of course, the occasional regulatory headache.
🚦 Want to Downgrade from MD to Non-MD? Not So Fast.
You might think downgrading your MD status is as simple as sending a polite email or letter to your DisCo and quoting a few Shakespeare lines for good measure. Sorry to burst your bubble, it’s not up to you.
MD classification isn’t based on whether you think you’re using less power or because your cousin Tunde swears your new LED bulbs reduced your energy consumption. It’s strictly based on actual, metered load. If your electricity usage consistently falls below 45kVA and this is verified through a technical assessment by your DisCo, then, and only then, can you be reclassified.
Yes, this is a technical and regulatory process. No, it’s not like switching from full cream milk to skimmed because it feels right.
📜 What Does NERC Say?
According to the Nigerian Electricity Regulatory Commission (NERC) directive that DisCos must meter all MD Customers before 1st March 2017, the rules are pretty clear (and refreshingly blunt):
“The affected electricity customers are those within the threshold of 45kVA consumption and above. Only customers below 45kVA can be classified as non-maximum demand customers.”
The reclassification process must be based on verified consumption data, not on customer request. Other considerations are based on question of facts. Translation? If your meters don’t support your downgrade story, you’re not going anywhere.
📚 Let’s Talk Real-Life Cases
Case 1: Lagbaja Hotel – The Not-So-Simple Downgrade Request
Lagbaja Hotel, a vibrant commercial hotspot with a load well over 45kVA, decided it wanted to downgrade to a Non-MD customer. Why? Because MD tariffs were a bit too spicy for their liking. The hotel, owned by Lagbaja Ltd. (a limited liability company), claimed it should be downgraded “just because.”
The DisCo, in its usual “we follow the rules” style, refused. They investigated and confirmed that the hotel was still used for the same commercial activity by the same owner, meaning, no dice on the downgrade.
Now, in an unexpected plot twist, a regulatory agency overruled the DisCo and insisted on the downgrade, even though this all happened before the current Band A tariff regime (where MD and Non-MD customers now pay the same rates). If anything, this case serves as a reminder that sometimes regulatory decisions defy all watt-age expectations.
Case 2: Lagbaja Plaza – One MD Meter to Rule Them All?
Lagbaja Plaza had a different situation. The premises housed multiple commercial tenants and had an MD meter installed to cover everyone under one high-powered umbrella. But when a few tenants became notorious for dodging their electricity bills (you know who you are), the caretaker cried foul.
They asked the DisCo to downgrade the entire plaza to a Non-MD status so each tenant could get their own prepaid meter and take responsibility for their consumption. Logical? Yes. Straightforward? Not quite.
Even though shared premises and mixed-use buildings can be tricky, the underlying issue is that load, not logic, governs classification. However, in cases like these, separation of accounts might be possible, but only if the landlord is ready to pay the costs of rewiring, re-metering, and possibly a small mountain of documentation.
🔧 What Must Happen Before Downgrading?
So, let’s break it down. If you’re thinking of moving from MD to Non-MD status, here’s your regulatory to-do list:
- Verified Load Reduction
Your metered consumption must consistently fall below 45kVA. No cheating, no unplugging the AC, only when the DisCo is coming. - Technical Assessment
The DisCo must visit your premises, conduct a proper technical assessment, and confirm your reduced load isn’t a fluke. - Costs on You
Be ready to foot the bill for:- Separation and rewiring of the premises,
- Purchase and installation of prepaid meters (PPMs) for individual units.
- Formal Approval Required
All changes must be backed by proper documentation and NERC’s approval where the complaint has been escalated. No shortcuts. No backdoors. No “but my neighbour did it”.
⚠️ Final Word
In NESI, the wattage never lies. Whether you run a hotel, manage a plaza, or just want to game the system for lower bills, MD classification isn’t something you opt into or out of at will. The system is designed to reflect actual consumption, not customer preferences.
So, before you ask your DisCo for a downgrade, ask your meter first. It knows best.
