… rejects DisCos’ technical excuses for paid-for but uninstalled meters

… reveals more than 350,000 pre-paid meters not migrated new STS standard

Oredola Adeola

The Nigerian Electricity Regulatory Commission (NERC) has issued a stern warning to all eleven DisCos over poor MAP refund compliance, a backlog of paid-for but uninstalled meters, and the failure to migrate more than 350,000 meters to the new STS standard.

The Commission has therefore threatened sanctions that may include deductions from their Operational Expenditure (OPEX).

This was part of the major highlights of the 4th NESI Stakeholders Meeting held in Abuja on Tuesday.

Dr. Musiliu Oseni, NERC Vice Chairman, addressed a report indicating that some DisCos have achieved only 2% performance on MAP meter refunds to customers and issued a stern warning regarding financial penalties: “This would be met with necessary sanctions.”

He proposed a direct enforcement mechanism utilizing the wholesale market structure, noting that DisCos still have their Operational Expenditure (OPEX) at the national wholesale market level.

According to him, if the DisCos refuse to refund their customers, that money can be withheld from their OPEX until they do so.

He also insisted that strict timelines be issued immediately to ensure compliance.

Dr. Oseni revealed that there are currently 600,000 to 700,000 meters available in the country.

He challenged utilities to improve publicity and rollout speed, emphasizing that the government has already made the investment, and DisCos need to step up.

He further issued a stern warning to DisCos regarding their cooperation with new state regulators, stressing that “No licensee is bigger than their regulator.”

Nathan Shatti, NERC Commissioner for Corporate Services, commenting on the data on Meter Asset Provider (MAP) refunds and installations, highlighted the poor performance of specific utilities, noting that Abuja and Kano DisCos have achieved only 2% compliance on refunds.

He urged the DisCos to stop behaving as if they are doing customers a favour.

Addressing the backlog of paid-for but uninstalled meters, he rejected technical excuses: “If your network is not ready for metering, do not collect people’s money.”

 Shatti further noted that for every transformer or meter not installed, DisCos incur losses, making it in their interest to meter customers and fix transformer-related issues.

The NERC Commissioner for Corporate Services, also revealed that over 350,000 meters are yet to be migrated to the new STS standard, demanding an immediate cleanup of obsolete data.

Dafe Akpeneye, NERC Commissioner for Legal, Licensing, and Compliance, dismissed the excuse from DisCos that they cannot locate thousands of meters because customers moved them without authorization.

Drawing a parallel to the banking sector, he argued that just as a “Post No Debit” order forces a bank customer to visit a branch, DisCos must use their vending platforms to enforce compliance.

“If you don’t know where the meter is, the customer shouldn’t be able to vend,” he stated.

NERC Commissioner for Legal, Licensing, and Compliance has consequently issued a directive urging the DisCos to issue a public notice that they cannot identify such meters, block them from vending, and remove them from their system until the concerned customers come forward.