NERC Directs DisCos to Replace Phased-out Meters

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The Federal Government has declared that electricity distribution companies must replace any meter phased out due to a meter upgrade.

It declared this through the Nigerian Electricity Regulatory Commission (NERC) and clarified that though there is no directive to phase out Unistar meters as claimed, they (meters) will soon be out of operation due to an upgrade in technology, and its users will not be able to vend.

The commission stated that any meter currently being replaced by Discos must be substituted to ensure no disruption to customers’ metering needs. As Nigeria struggles to close the seven million metering gap, some Discos have insisted that customers must get new meters before a November 14 deadline.

According to Musiliu Oseni, Vice Chairman of NERC, there was no official directive yet on phasing out Unistar meters, stressing that the issue of phasing them out is currently being handled operationally by the Discos. Oseni noted that the issue has to do with the Token Identifier Rollover.

He noted that if the meters were not upgraded, it would become difficult for customers to purchase electricity. Oseni emphasized that Unistar meters are not upgradable, and therefore, they will eventually need to be phased out.

“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 said.

He emphasized that during the phase-out process, no customer should be placed on estimated billing or be denied access to electricity.

He pointed out that if customers were asked to purchase meters under the MAP framework, Discos must provide a clear mechanism for refunds, as they are obligated to refund the customers.

“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,” he emphasized.