That year, PHCN ceased to exist.

In its stead, Nigeria Electricity Regulatory commission( NERC) was formed.

The government unbundled PHCN into eleven electricity distribution companies (DisCos), six generating companies (GenCos), and a transmission company (TCN).

Privatisation of the 11 DisCos resulted in the Federal Government retaining 40% of the equity in the DisCos and divesting  60% to private investors.

 The 11 Discos and states covered are :

• Abuja Disco: FCT, Kogi, Nasarawa & most parts of Niger States.
• Benin Disco: Edo, Ekiti, Delta, Ondo.
• Eko Disco: Southern Lagos State (Ojo, Festac, Ijora, Mushin (also covers Orile areas), Apapa, Lekki (also covers Ibeju areas), Lagos Island (also covers Ajele areas) & part of Ogun State (Agbara).
• Enugu Disco: Abia, Anambra, Enugu, Ebonyi, Imo.
• Ibadan Disco: Oyo, Ogun, Osun, Kwara and parts of Niger, Ekiti and Kogi states.
• Ikeja Disco: Parts of Lagos States (Abule Egba,  Akowonjo, Ikeja, Ikorodu, Oshodi, Shomolu).
• Jos disco: Bauchi, Benue, Gombe Plateau.
• Kaduna Disco: Kaduna, Kebbi, Sokoto, Zamfara.
• Kano Disco: Kano, Katsina, Jigawa.
• Portharcourt Disco: Akwa Ibom, Bayelsa, Cross River, Rivers.
• Yola Disco: Adamawa, Borno, Taraba & Yobe.