The Federal Government has ordered electricity distribution companies (Discos) to replace any meters that are being phased out due to technology upgrades, ensuring that no customer faces disruption in metering. This directive comes as Nigeria continues to address a metering gap that has left millions of electricity users without proper metering systems.
The Nigerian Electricity Regulatory Commission (NERC) clarified that there is no specific directive to phase out Unistar meters, as previously reported. However, NERC acknowledged that these meters will eventually become obsolete because they are not compatible with the latest technology upgrades. As a result, users of these meters will soon face challenges when trying to purchase electricity, as the meters will no longer support the necessary vending process.
NERC Vice Chairman Clarifies the Phase-Out Process
Speaking to The PUNCH, Musiliu Oseni, Vice Chairman of NERC, explained that the phase-out of Unistar meters is being managed at the operational level by the Discos. He emphasized that the issue revolves around the Token Identifier Rollover, a technological shift that requires the meters to be upgraded. Since Unistar meters cannot be upgraded, they will need to be replaced.
“If the meters are not upgraded, it would become difficult for customers to purchase electricity,” Oseni said.
He further stated that, as these meters are removed, Discos have a responsibility to provide replacements.
“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.
Oseni also stressed that during this replacement process, customers should not be subjected to estimated billing or face interruptions in their electricity supply. He highlighted that if customers are required to buy new meters under the Meter Asset Provider (MAP) framework, the Discos must ensure a clear system for refunds, as they are obligated to reimburse customers for the cost of new meters.
“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 through vendor financing, Disco financing, or if it is MAP-funded by the customer; but the customer must be aware that they would be refunded,” Oseni explained.
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Consumer Advocacy Groups Call for Halt on Meter Decommissioning
The All Electricity Consumer Protection Forum has raised concerns over the ongoing phase-out process. The group has urged Ikeja Electric and Eko Electricity Distribution Company to pause their efforts to decommission existing meters until there is formal regulatory approval from NERC.
In a letter dated October 15, 2024, and signed by National Coordinator Adeola Samuel-Ilori, the forum expressed disappointment with the Discos’ decision to phase out meters without providing a clear plan for replacing them. The forum emphasized the need for regulatory guidance to protect consumers and ensure a smooth transition to new metering systems.