The Federal Government of Nigeria has mandated that electricity distribution companies (Discos) must replace any meters phased out during a technological upgrade. The directive, issued through the Nigerian Electricity Regulatory Commission (NERC), clarifies that while Unistar meters will soon be out of operation due to an upgrade, there is currently no official directive to phase them out. Users of these meters will be unable to vend electricity once they become obsolete.
NERC emphasized that any meter being replaced by Discos must be substituted to avoid disrupting customers’ metering needs. Nigeria is facing a significant challenge in addressing its seven million metering gap, and some Discos are pushing customers to obtain new meters before a November 14 deadline.
Musiliu Oseni, Vice Chairman of NERC, stated there is no official directive to phase out Unistar meters at this time, as the matter is being managed operationally by the Discos. He noted the situation relates to the Token Identifier Rollover, which, if not addressed, could complicate customers’ electricity purchases.
“If they say those meters are not upgradable, they can decide to phase them out. However, as they remove the meters, they must replace them according to the rules. It is the responsibility of the Discos to ensure a smooth transition,” Oseni explained. He underscored that during the phase-out, customers should not be subjected to estimated billing or denied electricity access.
Oseni also highlighted that if customers were to purchase new meters under the Meter Asset Provider (MAP) framework, Discos must provide a clear mechanism for refunds, as they are obligated to reimburse customers. “It’s a win-win situation because customers will be frustrated if they want to vend and the meter is rejected. Discos must ensure a replacement mechanism is in place, whether through vendor financing, Disco financing, or customer-funded MAP,” he stated.
In response, the All Electricity Consumer Protection Forum has called on Ikeja Electric and Eko Electricity Distribution Company to halt the decommissioning of electricity meters. In a letter dated October 15, 2024, National Coordinator Adeola Samuel-Ilori expressed disappointment over the decision to phase out meters without a clear replacement plan and urged Discos to await formal regulatory approval from NERC before proceeding.
