NERC Threatens to Sanction Discos over Slow Metering Penetration

•Says over 700,000 devices available nationwide

Emmanuel Addeh in Abuja

The Nigerian Electricity Regulatory Commission (NERC) has threatened to sanction electricity Distribution Companies (Discos) over the slow rate of deployment of meters nationwide, especially under the Metering Asset Provider (MAP) scheme.

NERC’s Vice Chairman, Dr. Musiliu Oseni, handed down the warning when he delivered a message at the opening of the 4th Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting in Abuja, marking his final NESI meeting in that capacity.

Addressing regulators, operators, and stakeholders, Oseni touched on critical “crossroads” for the sector, stressing that with the transition to State Electricity Regulatory Commissions (SERCs) in full swing,  “No licensee is bigger than their regulator.”

Oseni also revealed that there are currently 600,000 to 700,000 meters available in the country. He challenged utilities to improve publicity and rollout speed, noting that the government has made the investment so the Discos need to step up.

Reacting to a report that some Discos have only achieved 2 per cent performance on MAP meter refunds to customers,  Oseni, the commission said, issued a stern warning regarding financial penalties: “This would be met with necessary sanctions.” he was quoted as saying.

Besides, the outgoing vice chairman of NERC proposed a direct enforcement mechanism utilising the wholesale market structure.  “You still have your Operational Expenditure (OPEX) at the national wholesale market level.

“ If you refuse to refund customers, that money can be withheld from your OPEX until you have done so,”  he said, insisting that strict timelines be issued immediately to ensure compliance.

Also, addressing recent media ‘misinformation’ regarding the tenure of NERC Commissioners, Oseni clarified the “Staggering Principle” embedded in Section 36 of the Electricity Act which was exported from the Electricity Power Sector Reform Act (EPSRA) and applied to only the pioneer Commission.

“Subsequent Chairmen and Commissioners have five-year tenures as provided in Section 36 (1) of the EA,” he stated.

Speaking during the stakeholders meeting,  Dafe Akpeneye, NERC’s Commissioner, Legal, Licensing and Compliance, dismissed the excuse from Discos that they cannot locate thousands of meters because customers moved them without authorisation.

Drawing a parallel to the banking sector, he argued that just as a “Post No Debit” order forces a bank customer to visit a branch, Discos must use their vending platforms to enforce compliance. “If you don’t know where the meter is, the customer shouldn’t be able to vend,” he stated.

He added:  “Issue a public notice that you cannot identify these meters. Block them from vending and take them off your system until the people concerned come forward.”

In his intervention, NERC Commissioner for Corporate Services, Nathan Shatti, highlighted the poor performance of specific utilities, noting that Abuja and Kano Discos have achieved only 2 per cent compliance on refunds.

“Stop behaving as if you are doing customers a favour,” Shatti stated while delivering a scathing critique of Discos’  operations.

Addressing the backlog of paid-for but uninstalled meters, he rejected technical excuses. “If your network is not ready for metering, do not collect people’s money,” he noted.

He further observed that for every transformer or meter not installed, Discos incur losses, hence it is in their interest to meter customers and fix transformer-related issues.

He also revealed that over 350,000 meters are yet to be migrated to the new Standard Transfer Specification (STS) standard, demanding immediate clean-up of obsolete data.

In Nigeria’s electricity sector, MAP is a scheme introduced by NERC in 2018 to address the severe shortage of electricity meters nationwide. Under the MAP scheme, independent, NERC-licensed companies supply, install, and maintain prepaid or postpaid meters.