Nigeria’s Energy Upgrade: Meters to be Replaced Amidst Regulatory Confusion

The Federal Government has mandated electricity distribution companies (Discos) to replace any meters that are phased out due to technological upgrades, ensuring that customers are not left without the ability to access electricity. This directive came via the Nigerian Electricity Regulatory Commission (NERC), which clarified recent rumours about Unistar meters being decommissioned.

While there is no official order yet to phase out Unistar meters, as claimed by some reports, NERC explained that these meters would soon become obsolete as the country upgrades its electricity infrastructure. Vice Chairman of NERC, MusiliuOseni, pointed out that Unistar meters are not upgradable and would eventually be phased out because they will no longer support the Token Identifier (TID) rollover required for customers to purchase electricity.

“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,” Oseni said, emphasising that the responsibility to provide new meters falls on the Discos.

This comes as Nigeria faces a critical challenge in addressing a metering gap of seven million customers, with some Discos already insisting that customers must purchase new meters ahead of a November 14 deadline. However, Oseni reiterated that any replaced meters must be substituted immediately, and customers should not be subjected to estimated billing or denied electricity during the transition.

The issue of refunds for customers forced to purchase new meters under the Meter Asset Provider (MAP) framework has also been raised. According to NERC, Discos must ensure a clear refund mechanism is in place for customers who pay for new meters, as they are legally entitled to reimbursement. “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 to be funded by the customer; but the customer must be aware that they would be refunded,” Osenistressed.

Meanwhile, consumer advocacy groups have voiced their concerns. The All Electricity Consumer Protection Forum has called on Ikeja Electric and Eko Electricity Distribution Company to halt any meter decommissioning until formal regulatory approval is granted by NERC. In a letter dated October 15, 2024, the forum’s National Coordinator, AdeolaSamuel-Ilori, expressed disappointment over the premature phase-out of meters without concrete plans for replacements.

As the Nigerian power sector navigates these operational challenges, the government’s push for a smooth transition in metering highlights the broader need for robust energy reforms. With millions still unmetered, the path ahead will require careful coordination between regulatory bodies, Discos, and consumer groups to ensure no customer is left in the dark.