A new controversy has erupted in the Nigerian electricity sector as electricity distribution companies (DisCos) and consumers clash over the payment of fees for meter updates with the deadline slated for November 24.
At the heart of the controversy is the order by DisCos to electricity customers to upgrade all outdated metres or face being switched to estimated billing.
Customers have resisted the move, viewing it as yet another financial burden in an already strained economic climate.
The issue has sparked widespread frustration among customers, who feel burdened by the costs associated with obtaining new or upgraded meters.
For many customers, the new fee feels like another injustice in a system they already perceive as unreliable and overpriced.
Abike John, a mother of three living in Lagos, said the cost of updating her meter would significantly impact her monthly budget.
“I have been managing my electricity expenses carefully, and now they want me to pay for a meter I am already struggling to recharge,” she said. “Why can’t they absorb the cost as part of their operations?”
Adebayo Sulaimon, a Lagos-based resident, said: “We are already struggling with high electricity tariffs and now we have to pay for meters as well,” he said. “It’s just too much for the average Nigerian to handle.”
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Why the meter update fees?
A senior representative of one of the DisCos who pleaded anonymity told BusinessDay that the meter update for electricity customers is necessary to keep the system running efficiently.
“We understand the concerns of the customers, but this meter upgrade is crucial to improving service delivery,” he said. “It’s like updating your phone from iPhone 5 to iPhone 16. Customers who comply will benefit from reduced technical errors and enhanced transparency in billing.”
He noted that DisCos don’t have free meters to distribute to electricity customers.
Ikeja Electric Plc and Eko Electricity Distribution Company had earlier instructed energy consumers using the old Unistar prepaid meters to replace them by November 24, 2024, or face being switched to estimated billing
This decision triggered a backlash, prompting the Nigerian Electricity Regulatory Commission (NERC) and the Federal Competition and Consumer Protection Commission (FCCPC) to intervene. They urged Ikeja Electric and EKEDC not to phase out the meters, especially since Unistar maintained that their devices were functioning properly.
The backlash against the two distribution companies stems from the increased cost of the meters, coming at a time when many Nigerians are struggling with severe economic difficulties due to high inflation and rising energy prices.
Adding to the controversy is the issue of Meter Asset Providers (MAPs), companies approved by NERC to supply and install meters. While these providers help customers to acquire meters, there have been complaints about delays and inefficiencies in the installation process.
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Customer Complaints, NERC intervention
“Even after making the payments, we have to wait for months to get the meters installed,” Olabode Paul, another electricity customer, complained. “It’s a frustrating experience and makes us question the efficiency of the entire system.”
The NERC has acknowledged the challenges and called for DisCos to replace obsolete prepaid meters for their customers without charge.
The Commission stated that, under the Nigerian Electricity Supply Industry Act, it is DisCos to replace faulty or outdated prepaid meters for their customers.
This requirement was highlighted in a statement issued by the regulatory authority’s management and shared on its official X account on Monday.
The Commission also reiterated that no customer should be subjected to estimated billing.
The statement read, “The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas.
“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 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 further urged affected customers to report any incident via dedicated phone lines and e-mail addresses.
“The commission restates its commitment to protect customers’ interests and rights by ensuring compliance with established regulatory standards and enforcing regulatory penalties for non-compliance by its licensees.”
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