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Home Sectors Energy

NERC directs DisCos to provide free replacement for old meters 

Research Team by Research Team
November 18, 2024
in Energy, Sectors
NERC's new meter pricing sparks divergent opinions among industry and consumers 
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The Nigerian Electricity Regulatory Commission (NERC) has directed distribution companies (DisCos) to replace obsolete meters for their customers at no cost.

This mandate was outlined in a statement released by the regulatory body’s management on Monday.

The directive follows recent reports of some electricity companies requiring customers to replace Unistar prepaid meters.

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NERC emphasized that the cost of meter replacement falls solely on the distribution companies and reiterated that no customer should be subjected to estimated billing.

What NERC is saying 

“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 said.

Backstory  

Nairametrics previously reported that the Federal Competition and Consumer Protection Commission (FCCPC) directed Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDP) to immediately halt the replacement of Unistar prepaid meters due to their non-compliance with directives from the Nigerian Electricity Regulatory Commission (NERC).

  • The FCCPC also advised electricity distribution companies (DisCos) to engage with energy consumers before placing them in tariff bands and to strictly adhere to industry regulations when billing unmetered customers.
  • The directive was issued by FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, during a stakeholders’ meeting at the FCCPC headquarters in Abuja.

“The FCCPC’s directive to discontinue the replacement process stems from the DisCos’ non-compliance with NERC’s Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry. Both NERC and NEMSA have endorsed the FCCPC’s stance on this issue,” the statement reads.

“Citing non-compliance with NERC’s order, FCCPC directed Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDP) to immediately halt their replacement of Unistar prepaid meters,” Bello said.

Consumers were also urged to report any attempts by Ikeja or Eko DisCos to disregard the directive by contacting FCCPC’s dedicated electricity helpline at 08119877785.


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Tags: DISCOSNERC
Research Team

Research Team

The Research Team at Nairametrics meticulously monitors, gathers, curates, and administers an extensive repository of both macroeconomic and microeconomic data originating from Nigeria and across Africa. Utilizing a variety of presentation formats—including documents, tables, and charts—our analysts disseminate key findings through the Nairametrics platform. Additionally, we regularly release insightful, research-driven articles that offer in-depth analyses of economic trends and indicators.

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