NERC Orders Free Meter Swaps for Nigerians

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Toba Owojaiye reporting
Benin City, Edo State

The Nigerian Electricity Regulatory Commission (NERC) has recently mandated that distribution companies (DisCos) replace obsolete meters for their customers at no cost, following reports of DisCos requiring customers to replace Unistar prepaid meters.

Truth Live News gathered that this August move aims to address the malady of faulty and outdated meters, emphasizing that customers should not face estimated billing if their meters are found to be defective. NERC’s directive aligns with its 2021 order on meter replacement, stating that DisCos are responsible for replacing faulty meters at no charge, unless the fault is due to the customer.

This directive has sparked divergent opinions among industry players and consumers. While it provides relief for customers who would otherwise have to pay for meter replacements, some critics argue that the cost burden on DisCos could affect their financial stability and service delivery.
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.

FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello said, ‘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.

Additionally, the Federal Competition and Consumer Protection Commission (FCCPC) had previously intervened, instructing Ikeja and Eko DisCos to halt the replacement of Unistar meters due to non-compliance with NERC’s order. This move is seen as a step toward better consumer protection and regulatory compliance, but it may also bring challenges in terms of ensuring DisCos adhere to these mandates.

In the broader context, the directive could be viewed as a positive development for consumers, offering them a glimmer of hope for better service delivery and more transparency in the sector. However, its long-term impact will depend on how effectively NERC and other stakeholders enforce these regulations. The success of this initiative could mark a significant improvement in Nigeria’s electricity distribution system, serving as a light at the end of the tunnel for long-suffering consumers.

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