NERC directs DisCos to replace outdated electricity meters for consumers

*The Nigerian Electricity Regulatory Commission has mandated the electricity Distribution Companies to replace faulty, obsolete meters with smart prepayment meters for consumers with effect from March 4

Alexander Davis | ConsumerConnect

Against the backdrop of the three million additional electricity meters said to be obsolete and due for replacement in the country, the Nigerian Electricity Regulatory Commission (NERC) has mandated the electricity Distribution Companies (DisCos) to replace faulty and obsolete meters for their customers with effect from March 4.

The government regulatory agency stated this in the Order No. NERC/246/2021 it released Thursday, March 4, 2021.

Prepayment electricity meters

The documents “In the matter of the order on structured replacement of faulty and obsolete end-user customer meter in NESI” disclosed that seven million customers in the Nigerian Electricity Supply Industry (NESI) are yet unmetered.

It said that its customer enumeration data that made the revelation estimated that additional three million meters are obsolete and due for replacement.

NERC noted the existence of unmetered customers contributes to the threat of financial stability of the electricity market.

The regulator stated: “The Commission notes that over 7 million customers are currently unmetered as indicated by customer enumeration data.

“It is also estimated that an additional 3 million meters are currently obsolete and due for replacement.

“The existence of a large population of unmetered customers contributed to threats affecting the financial viability of NESI as unmetered end-use customers expressed deep dissatisfaction with the estimated billing methodology.

“The revenue assurance objectives of DisCos have also been challenged by being unable to properly account for the utilisation of electricity by end-use customers.”

The Commission orders the DisCos as follows –

“A. DisCos shall grant priority to the metering of unmetered customers under the National Mass Metering Programme.

“B. DisCos may replace faulty/obsolete meters under the National Mass Metering

Program but these replacements must be done in strict compliance with the “Metering Code and other regulatory instruments of the Commission.

D. DisCos shall inspect meters of metered end-use customers and the replacement notice shall contain the following –

i. The date of inspection.

ii. Name, designation and signature of the officer that inspected the meter.

iii. The fault identified in the meter.

iv. The date for the installation of the replacement meter.

D. The Commission shall be copied on all replacement notices issued to end-use customers for the purpose of conducting random reviews of the replacement exercise.

E. New meters must be installed upon the removal of the faulty/obsolete meter and under no circumstances shall the customer be placed on estimated billing on account of the DisCo’s failure to install a replacement meter after the removal of the faulty/obsolete meter.

F. The customer and DisCo representative shall jointly note the units on the meter being replaced and the customer must be credited with these units within 48 hours after the installation of the meter.

G. Customers shall only be billed for loss of revenue where the DisCo establishes meter tampering, by-pass or unauthorised access as contained in NERC Order/REG/ 41/2017 on Unauthorised Access, Meter Tampering and Bypass.

H. Activation tokens shall be issued to customers immediately after replacement of the faulty/obsolete meter.

I. DisCos shall file monthly returns with the Commission on the replacement of faulty/obsolete meters along with their proposal for the decommissioned meters.

J. This Order may be cited as the Order on the Structured Replacement of Faulty/Obsolete Meters of End-Use Customers.”

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