Energy

FG Urges Discos to Embrace Technological Upgrade, Replace Phased-Out Meters for Customers

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The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC), has issued a directive to electricity distribution companies (Discos) in the country concerning the replacement of phased-out meters.

In a statement, NERC urged electricity companies to embrace technological upgrades.

While there is no immediate directive to phase out Unistar meters, which are not upgradable, the statement noted that these meters will soon become obsolete. The commission emphasized that users of Unistar meters would face vending challenges once the upgrade occurs.

This development comes amid the ongoing metering gap issue in Nigeria. As a result, some Discos have insisted that customers obtain new meters before November 14.

However, in an interview monitored by this platform, NERC Vice Chairman Musiliu Oseni clarified that no official directive has been issued regarding the phasing out of Unistar meters. He reiterated that when Discos remove these meters, it is their responsibility to replace them.

Oseni said, “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 added, “It’s a win-win for both sides because customers will be frustrated if, at a point, they want to vend, and the meter is rejected. For Discos to remove the meter, they must ensure a replacement mechanism, either through vendor financing, Disco financing, or Meter Asset Provider (MAP) financing, funded by the customer, who must be refunded.”

Meanwhile, on Tuesday, October 15, the Federal Government announced plans to import 1.3 million meters as part of a broader strategy to eliminate estimated billing in the country, which it described as fraudulent.

Minister of Power Adebayo Adelabu, speaking at the Nigeria Energy Summit in Lagos, highlighted that the metering gap is a significant issue that requires collective efforts to address.

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