Federal Government Mandates Replacement Of Phased-Out Electricity Meters

The Federal Government has announced that electricity distribution companies (Discos) are required to replace any electricity meters phased out due to technology upgrades.

This directive was issued through the Nigerian Electricity Regulatory Commission (NERC), clarifying that while there is no immediate directive to phase out Unistar meters, these meters will soon be out of operation as a result of necessary technological advancements.

In a statement, the commission indicated that users of Unistar meters would face challenges with vending once the upgrade occurs.

NERC stressed that any meters currently being replaced by Discos must be substituted to ensure that customers’ metering needs are met without disruption.

As Nigeria grapples with a significant metering gap of approximately seven million, some Discos have insisted that customers must obtain new meters before a looming November 14 deadline.

The Vice Chairman of NERC, Musiliu Oseni, clarified in an interview with Punch that no official directive has been issued regarding the phasing out of Unistar meters, emphasizing that the matter is currently being managed operationally by the Discos.

He explained that the challenge lies with the Token Identifier Rollover, which, if not addressed, could hinder customers’ ability to purchase electricity.

Oseni noted that Unistar meters are not upgradeable, making their eventual phase-out inevitable.

“Operationally, if they say those meters are not upgradable, they can decide to phase them out. But as they remove the meters, based on the rule, they must replace them. It is the responsibility of the Discos to replace them,” he stated.

Moreover, he highlighted that during the transition period, no customer should be subjected to estimated billing or denied access to electricity.

If customers are required to purchase new meters under the Meter Asset Provider (MAP) framework, Discos are obligated to establish a clear refund mechanism for those customers.

He added, “It’s a win-win for both sides because customers will be frustrated if it gets to a point that they want to vend and the meter is rejected. For Discos to remove the meter, they must make sure a mechanism for replacement happens, either vendor financing, Disco financing, or if it is MAP (Meter Asset Provider) to be funded by the customer; but the customer must be aware that they would be refunded.”