DisCos should replace obsolete meters at no cost to customers, NERC directs

• The Nigerian Electricity Regulatory Commission (NERC) said Distribution Companies (DisCos) are solely responsible for replacing obsolete meters
• It said DisCos asking customers to pay for replacing meters contravenes the NERC’s regulations
• The directive follows a similar one by the Federal Competition and Consumer Protection Commission (FCCPC) 

The Nigerian Electricity Regulatory Commission (NERC) has directed electricity distribution companies (DisCos) to replace obsolete meters at no cost to their customers.

In a statement posted by the NERC on its official X handle on Monday, November 18, the commission said the burden of replacing meters rests squarely on the shoulders of DisCos, while also frowning at the estimated method of billing customers.

NERC’s directive comes on the heels of recent reports of some electricity companies requiring customers to replace Unistar prepaid meters.

The statement read, “The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies (DisCos) have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas.

“This instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete End-use Customer Meters in the Nigerian Electricity Supply Industry. The order clearly states that no customer with a meter should be forcefully migrated to estimated billing.  

“If any customer’s meter is adjudged by any DisCo to be obsolete or faulty, it is the responsibility of the DisCo to replace the meter free of charge, provided that the fault was not caused by the customer.”

NERC’s directive follows FCCPC’s warning against unfair practices

Before the NERC’s directive, the Federal Competition and Consumer Protection Commission (FCCPC) had warned DisCos against unfair practices in meter replacement and directed DisCos to immediately halt the replacement of Unistar prepaid meters due to their non-compliance with directives from the NERC.

The FCCPC said all unfair actions and practices against consumers by DisCos, such as arbitrary billing and lack of transparency in metering, are unacceptable and urged them to adhere to extant rules and regulations.

The commission had also stated that DisCos should bear the cost of replacing phased-out meters following widespread complaints from consumers following a recent announcement by Ikeja Electric that the Unistar prepaid meters, which were first deployed over a decade ago, will no longer be supported from November 14, 2024, due to technological upgrades and the Token Identifier (TID) rollover issue.

Nigeria loses $26bn yearly to electricity shortages –Report

Meanwhile, TheRadar reported that Nigeria suffers an estimated annual economic loss of $26 billion due to electricity shortages, according to a report, Africa Trade Barometer, by the Standard Bank.

According to the report, businesses shore up electricity shortages by spending nearly $22 billion annually on off-grid fuel, which leads to increased operational costs.