Financial Energy Review
….by Ben Ndubuwa……
The Nigerian Electricity Regulatory Commission (NERC) has reiterated its stance on electricity metering regulations, urging consumers to avoid paying for the replacement of faulty or obsolete meters. In a clear message issued yesterday, the regulator reminded both consumers and Distribution Companies (Discos) of the extant laws and regulations governing the power sector in Nigeria.
NERC’s statement comes in response to growing complaints from customers who have been instructed by certain Discos to pay for the replacement of faulty meters within their areas. According to NERC, this practice is a direct violation of the commission’s regulations and should be stopped immediately.
“Nigerians should not be made to pay for the replacement of meters, as it is the responsibility of Discos to provide and maintain metering devices,” the Commission stated on its official X (formerly Twitter) handle.
Discos in Violation of Regulations
The NERC statement highlighted that some Discos have been pressuring customers to apply and pay for the replacement of faulty or outdated meters. However, NERC emphasized that this is only permissible if the fault in the meter is directly caused by the consumer’s actions, which is rarely the case.
“The only situation where a customer may be required to bear the cost of a meter replacement is if the damage is a result of the customer’s actions, such as tampering with the meter or causing it to malfunction,” NERC explained.
The commission pointed to its 2021 order, NERC/246/2021, which governs the structured replacement of faulty and obsolete meters in the Nigerian Electricity Supply Industry (NESI). The order clearly mandates that it is the responsibility of Discos to replace faulty meters at no cost to the customer, except in cases where the customer is at fault.
Metering and Estimated Billing
Another critical aspect of NERC’s statement concerns the practice of estimated billing, which has long been a contentious issue in Nigeria’s power sector. Many Nigerian consumers have been subjected to estimated bills, often criticized as opaque and exploitative. The commission made it clear that the migration of a customer from metered billing to estimated billing is illegal.
“No customer should be forcefully migrated to estimated billing,” the commission emphasized. “If any customer’s meter is found to be faulty or obsolete, it is the responsibility of the Disco to replace it free of charge, provided the fault is not caused by the customer.”
This warning is part of NERC’s ongoing efforts to enforce the regulations surrounding metering and billing practices in the Nigerian electricity sector. The commission stressed that consumers should not bear the financial burden of replacing faulty meters, and urged them to report any cases of non-compliance by Discos.
Commitment to Customer Protection
The regulator reaffirmed its commitment to safeguarding customers’ rights, pledging to take swift action against Discos that fail to comply with regulatory orders. NERC vowed to enforce penalties against any licensed electricity provider found violating these standards.
“We are committed to protecting the interests of electricity consumers and ensuring that Discos adhere to the rules set out by the commission,” said a NERC spokesperson. “We encourage customers to report any cases of non-compliance to our office so that appropriate action can be taken.”
Challenges in Metering Penetration
Despite efforts by the federal government to improve meter availability, a significant number of Nigerian consumers remain under estimated billing, which has been described by many as a form of “daylight robbery.” This issue has persisted for years, contributing to widespread dissatisfaction with the electricity distribution system.
NERC has consistently worked to improve meter penetration in the country, but the issue of inadequate metering infrastructure remains a significant challenge. As of now, many consumers still face inflated bills due to the lack of properly installed meters.
“Metering remains one of the key issues facing the Nigerian power sector. We are fully aware of the frustrations this causes for consumers,” NERC said in its statement. “We continue to push for solutions that will ensure that every customer gets a fair and transparent billing experience.”
What Consumers Should Do
NERC has advised consumers to be vigilant and proactive in safeguarding their rights. If a customer’s meter is found to be faulty or outdated, they are entitled to a free replacement. If any customer feels they are being wrongly charged for such replacements, they are urged to file complaints with the relevant authorities.
The power sector regulator also recommended that customers familiarize themselves with the NERC guidelines and stay informed about their rights regarding electricity billing and metering.
As Nigeria continues to grapple with electricity supply challenges, NERC’s firm stance on metering practices are aimed to restore transparency and fairness in the sector.
