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The Nigerian Electricity Regulatory Commission has clarified that not all electricity meters currently being installed across the country are free, as it sought to address growing confusion over the Federal Government’s metering programmes and recent warnings against illegal charges by electricity distribution companies.
The Chairman of NERC, Musiliu Oseni, made the clarification on Saturday during a radio chat with Adeola Samuel-Ilori on Fresh FM, explaining that meters provided under government-funded initiatives are free at the point of installation, while other options still exist for customers who are unable or unwilling to wait.
Oseni said meters supplied under the Distribution Sector Recovery Programme, known as DISREP, are fully funded by the Federal Government and must be provided to customers at no cost, but those who felt the deployment was taking too long could pay for the product under the MAP scheme.
“The meter provided by the government is 100 per cent free. The DISREP meter is free because it is paid for by the government.
The DisCos have been rolling it out. Of course, they will pay the money back, but the loan comes at a very minimal interest rate. So, through the tariff, DisCos are not going to charge customers because of the meter. They are to provide it free of charge to the customers, and that is what the minister and the DG of BPE actually meant. And it is 100 per cent free,” Oseni said.
He stressed that electricity distribution companies are prohibited from demanding any payment from customers for meters deployed under the programme, noting that the cost recovery mechanism does not involve upfront charges.
“If you get the free meter, you are not to be paid anything. Ideally, you are meant to pay for the cost of the meter given to you through the tariffs. So, no DisCo is allowed to collect money from customers because of a DISREP meter.”
Oseni, however, explained that the Meter Asset Provider scheme remains in operation for customers who may not be able to wait for the rollout of the free meters due to timing or logistical constraints.
“There is still the Meter Asset Provider. Those residing in an area where it will take time before the free installation gets to them, and they cannot wait, can decide to pay for a Meter Asset Provider. But they must ensure that they pay into a company, not an individual,” he stated.
The chairman warned consumers to be vigilant, adding that free meters can be easily identified. “When the MAP meter gets to them, they can check whether it is a meter that is meant to be free that is being provided after payment. If you look at the free meters carefully, there is an inscription. After the name of the DisCo, you will see DISREP,” he explained.
The NERC chairman said the commission had introduced multiple initiatives to close Nigeria’s metering gap after discovering that DisCos were struggling to access financing.
“When we evaluated the financing, we realised that based on the difficult situation, the current situation, it would be difficult for them to attract financing. Banks will look at their books before they can lend them money. That was why we said, ‘Okay, let’s come up with some of these initiatives,” he said.
He added that customers who previously paid upfront for meters under approved arrangements were entitled to refunds. “If you pay for your meter upfront, you are meant to get refunded. But if you get the free meter, you are not to be paid anything; you are meant to pay for the cost of the meter given to you through the tariffs,” he disclosed.
The clarification comes amid controversy triggered by the Federal Government’s recent ban on electricity distribution companies and installers from collecting any form of payment for meters.
The Minister of Power, Adebayo Adelabu, issued the warning during an on-site inspection of newly imported smart meters at APM Terminals, Apapa, Lagos, recently.
The minister said the meters were procured under the World Bank-funded Distribution Sector Recovery Programme and must be installed for consumers free of charge, regardless of tariff band.
“I want to mention that it is unprecedented that these meters are to be installed and distributed to consumers free of charge—free of charge. Nobody should collect money from any consumer. It is an illegality. It is an offence for the officials of distribution companies across Nigeria to request a dime before installation; even the indirect installers cannot ask consumers for a dime,” Adelabu said.
Despite the directive, electricity distribution companies expressed concerns, insisting that although customers may not pay cash upfront, the cost of the meters would still be borne by DisCos over time, raising questions about cost recovery, installation expenses, and financial sustainability.
Some operators, who spoke anonymously, described the policy as politically motivated and lacking adequate stakeholder consultation, particularly with installers and manufacturers.
But the Bureau of Public Enterprises later weighed in, stating that electricity consumers would ultimately pay for meters through tariffs, just as they do for other infrastructure investments.
Reacting to claims that DisCos were being asked to repay the cost of meters over a 10-year period, the Director-General of the BPE, Ayo Gbeleyi, dismissed the assertions as misleading.
“We’ve had pushback where some have said, ‘No, the DisCos are paying for the meters over 10 years. The truth is, every component of investment that goes into the DisCos gets recouped through the tariff structure. So, whether it is a feeder pillar, whether it is a transformer, or whether it is a meter, we as consumers will ultimately pay for those pieces of equipment through the tariff design,” Gbeleyi stated.
He reiterated that customers were not expected to make direct payments for meters, especially unmetered customers, noting that Nigeria currently has about 5.9 million customers without prepaid meters.
The NERC boss recalled that President Bola Tinubu had mentioned during his campaign that he would close the meter gap, saying that it had started with DISREP.
According to Oseni, there is the presidential metering initiative for which the procurement process is still ongoing under the office of the Special Adviser to the President on Energy.
Since the Federal Government announced the free meter initiative, customers have been seeking to know why some meters still attract costs, but the explanation by Oseni seems to have clarified the grey areas.
Punch
