FG Directs DisCos: New Meters for Consumers

 FG Orders Replacement of Old Electricity Meters

NERC clarified that there's no official plan to phase out Unistar meters immediately...

The Federal Government directs electricity distribution companies (DisCos) to replace phased-out meters, enhancing Nigeria's power infrastructure.

The Nigerian Federal Government has directed electricity distribution companies (DisCos) to replace outdated meters with upgraded ones, ensuring uninterrupted power supply to consumers. This mandate, communicated through the Nigerian Electricity Regulatory Commission (NERC), aims to prevent disruptions in electricity access due to technological advancements.

NERC clarified that there's no official plan to phase out Unistar meters immediately, contrary to some claims. However, these meters will eventually become obsolete as metering technology evolves. Once outdated, users won't be able to recharge or purchase electricity through them.

The commission emphasized that DisCos must replace outdated meters to maintain continuous service, preventing disruptions to customers' electricity access. This move aligns with NERC's mission to promote an investor-friendly industry and efficient market structure, ensuring safe, adequate, reliable, and affordable electricity for Nigeria.

Pointers:

Meter Replacement Mandate: DisCos must replace outdated meters with upgraded ones.

No Immediate Unistar Meter Phase-out: NERC clarified that there's no plan to phase out Unistar meters immediately.

Technological Upgrades: Outdated meters will become obsolete due to advancements in metering technology.

Continuous Service: DisCos must ensure uninterrupted power supply to consumers.

NERC's Mission: Promote an investor-friendly industry and efficient market structure for Nigeria's electricity sector.

Nigeria is tackling a major meter installation gap of seven million, and some electricity distribution companies (Discos) are requiring customers to get new meters before November 14. The reason for this urgency is the phasing out of Unistar meters, which NERC's Vice Chairman, Musiliu Oseni, says is being handled operationally by Discos.

The main issue is the Token Identifier Rollover system, which will prevent customers from buying power unless their meters are upgraded. Unfortunately, Unistar meters can't be upgraded, so they'll need to be replaced. This change is part of Nigeria's efforts to bridge the metering gap and ensure uninterrupted power supply.

Facts:

Meter Replacement Deadline: November 14, 2024 

Reason for Replacement: Token Identifier Rollover system making Unistar meters obsolete 

NERC's Stance: Phasing out of Unistar meters is being managed by Discos 

Cost of New Meters: N39,765.86 (VAT inclusive) for single-phase, N72,085.68 (VAT inclusive) for three-phase 

The All Electricity Consumer Protection Forum is urging Ikeja Electric and Eko Electricity Distribution Company to put the brakes on decommissioning electricity meters until they get the green light from the Nigerian Electricity Regulatory Commission (NERC). In a letter dated October 15, 2024, the forum's National Coordinator, Adeola Samuel-Ilori, expressed concerns about phasing out meters without a solid replacement plan in place.

Concerns:

Lack of Regulatory Approval: The forum wants Ikeja Electric and Eko Electricity Distribution Company to wait for official approval from NERC before proceeding with the meter phase-out.

Unclear Replacement Strategy: The forum is dissatisfied with the lack of clarity on how the meters will be replaced, leaving consumers in the dark.

This development highlights the need for transparency and consumer protection in the electricity distribution sector. Consumers have rights and responsibilities that must be respected. The Federal Competition and Consumer Protection Commission (FCCPC) has previously addressed similar concerns, emphasizing the importance of fair business practices.

“Operationally, if they say those meters are not upgradable, they can decide to phase them out. But as they remove the meters, based on the rule, they must replace them. It is the responsibility of the Discos to replace them,” he said.

NERC's Vice Chairman, Musiliu Oseni, made it clear that customers should not face estimated billing or electricity disconnection during the replacement of old meters. This ensures uninterrupted power supply and protects consumers from potential financial burdens.

Oseni also emphasized that under the Meter Asset Provider (MAP) scheme, distribution companies must establish a transparent refund process. This guarantees that customers who purchase meters will receive reimbursement for the costs incurred. The refund process is crucial, as it holds distribution companies accountable for their obligations to customers.

Highlights:

No Estimated Billing or Disconnection: Customers should not face estimated billing or electricity disconnection during meter replacement.

Transparent Refund Process: Distribution companies must establish a clear refund process for customers who purchase meters under the MAP scheme.

Customer Protection: These measures ensure uninterrupted power supply and protect consumers from potential financial burdens.

“It's a win-win for both sides because customers will be frustrated if it gets to a point that they want to vend and the meter is rejected. For Discos to remove the meter, they must make sure a mechanism for replacement happens, either vendor financing, Disco financing, or if it is MAP (Meter Asset Provider) to be funded by the customer; but the customer must be aware that they would be refunded,” he emphasised.