NERC warns DisCos against forcing customers to pay for meter replacement

NERC says DisCos are mandated to replace faulty or outdated meters at no cost to customers, provided the meter’s fault was not caused by customer negligence.

The Nigerian Electricity Regulatory Commission (NERC) has condemned the actions of electricity Distribution Companies (DisCos) instructing customers to pay for the replacement of faulty or obsolete meters.

In a statement issued on Monday via its X account, the commission described the directive as a clear violation of its order.

“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 statement read.

According to the regulatory order, DisCos are mandated to replace faulty or outdated meters at no cost to customers, provided the meter’s fault was not caused by customer negligence.

“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,” the statement added.

Back story

The dispute over meter replacement in Nigeria has intensified as electricity distribution companies (DisCos) and regulatory authorities clash over costs and compliance.

The controversy began with DisCos, such as Ikeja Electric (IE), announcing plans to phase out older Unistar prepaid meters, citing the Token Identifier (TID) rollover issue that renders these meters obsolete. Customers were asked to pay between N134,000 and N224,000 for replacements, raising significant consumer concerns about affordability and fairness  .

NERC and the Federal Competition and Consumer Protection Commission (FCCPC) intervened, reiterating that DisCos are required to replace faulty or obsolete meters free of charge under NERC’s Order No. 246/2021.

This directive prohibits placing customers on estimated billing during meter replacement delays, ensuring service continuity at no cost to consumers. NERC and FCCPC warned of severe penalties for any violations, accusing some DisCos of exploiting customers by attempting to shift the financial burden onto them.

Reporting channels

NERC reaffirmed its commitment to safeguarding the rights and interests of electricity consumers in Nigeria.

The regulatory body emphasised that it would enforce penalties for non-compliance by any DisCo and urged affected customers to report such violations.

“We urge customers to report cases of non-compliance to the Order by any DisCo through the following channels:

“Phone: 07000 CALL NERC (07000 2255 6372), 0201 344 4331, 0908 899 9244, Email: complaints@nerc.gov.ng.”