FG orders Distribution Companies (DisCos) to replace phased-out meters

Electricity distribution companies are required by the federal government to replace any meters that are being phased out as a result of meter upgrades.

It made this announcement through the Nigerian Electricity Regulatory Commission and explained that, despite the fact that there isn’t a regulation to phase out Unistar meters as stated, a technological upgrade will soon render them inoperative, preventing their users from vending.

The commission stated that any meter currently being replaced by Discos must be substituted to ensure no disruption to customers’ metering needs.

As Nigeria struggles to close the seven million metering gap, some Discos have insisted that customers must get new meters before a November 14 deadline.

Speaking with The Punch, the Vice Chairman of NERC, Musiliu Oseni, stated that there was no official directive yet on phasing out Unistar meters, stressing that the issue of phasing them out is currently being handled operationally by the Discos.

Oseni noted that the issue has to do with the Token Identifier Rollover.

According to him, if the meters were not upgraded, it would become difficult for customers to purchase electricity.

Oseni emphasised that Unistar meters are not upgradable, and therefore, they will eventually need to be phased out.

“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.

He emphasised that during the phase-out process, no customer should be placed on estimated billing or be denied access to electricity.

He pointed out that if customers were asked to purchase meters under the MAP framework, Discos must provide a clear mechanism for refunds, as they are obligated to refund the customers.

“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.

Meanwhile, the All Electricity Consumer Protection Forum has urged Ikeja Electric and Eko Electricity Distribution Company to suspend the decommissioning of electricity meters, calling on the Discos to wait for formal regulatory approval from NERC before proceeding with the phase-out.

In a letter dated October 15, 2024, and signed by its National Coordinator, Adeola Samuel-Ilori, the forum expressed disappointment over the move to phase out meters without any plan to replace them.

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