NERC: DisCos Must Replace Faulty Meters

  • The Nigerian Electricity Regulatory Commission (NERC) has warned consumers against paying for the replacement of faulty meters.
  • The Association for Public Policy Analysis (APPA) has called for an investigation into how the N200 billion Mass Metering Fund was utilized.

The Nigerian Electricity Regulatory Commission (NERC) has issued a warning to electricity consumers, advising them against paying for the replacement of faulty or obsolete meters. According to NERC, the electricity distribution companies (DisCos) are responsible for replacing meters at no cost to the consumer as long as the meters have not been tampered with.

In a statement released Monday, November 18, 2024, NERC clarified that DisCos must replace faulty or obsolete meters under Order No. NERC/246/2021 mandates the structured replacement of customer meters in the Nigerian Electricity Supply Industry (NESI).

The Order explicitly states that no consumer should be forced onto estimated billing if their meter is faulty or outdated, provided the consumer does not cause the issue. NERC reaffirmed its commitment to safeguarding consumers’ rights and interests by ensuring that regulatory standards are followed and penalties are enforced against DisCos who fail to comply.

As of the second quarter of 2024, data from NERC reveals that only 45%, or approximately 5.99 million, of the 13.19 million electricity customers in Nigeria have functional meters. This leaves over 7 million customers subjected to the unreliable practice of estimated billing.

Meanwhile, the Association for Public Policy Analysis (APPA), a consumer advocacy group, has called for an investigation into the N200 billion Mass Metering Fund provided by the Central Bank of Nigeria (CBN) to facilitate the installation of meters across the country. The group raised concerns over the National Mass Metering Program status, particularly following the N59.28 billion allocated for its pilot phase 2020, which was intended to supply one million meters.

Chief Princewill Okorie, President of APPA, questioned how the funds were spent and called on the House of Representatives Committee on Banking Regulations to investigate the matter. Okorie expressed concern that despite the significant investment in the Mass Metering Program, there has been little clarity from the Minister of Power, Chief Adebayo Adelabu, on the status of earlier metering initiatives, such as the Meter Assets Provider (MAP) scheme introduced in 2018. He stressed the need to thoroughly evaluate the previous policies before introducing new measures, urging legislative oversight to ensure accountability and better outcomes for electricity consumers.

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