The Nigerian Electricity Regulatory Commission (NERC) has given electricity distribution companies (DisCos) a final deadline of January 1, 2025, to complete the upgrade of prepaid meters for their customers.
This new deadline comes after the previous one, set for November 24, 2024, expired without the DisCos meeting their targets.
NERC announced the extension in a statement posted on its official X (formerly Twitter) account on Thursday, warning that non-compliance would attract severe penalties.
“DisCos must ensure all their customers’ meters are upgraded to Standard Transfer Specifications (STS) meters by January 1, 2025,” NERC’s statement declared.
The commission emphasized that sanctions would include daily fines for each meter left un-upgraded after the new deadline.
The metering gap in Nigeria remains a critical challenge despite efforts to address it.
NERC disclosed that the country’s metering rate is approximately 50%, leaving half of electricity consumers reliant on estimated billing.
Since the privatization of the power sector in 2013, 3.03 million meters have been installed, yet a significant portion of customers remains unmetered.
Dr. Yusuf Ali, NERC’s Commissioner for Planning, Research, and Strategy, expressed concerns over the issue during the PwC 2024 Annual Power and Utilities Roundtable.
“The metering gap is a major obstacle to the sector’s liquidity and overall efficiency,” he said.
Ali noted that accurate metering is critical for revenue recovery and the success of tariff reforms.
“Without proper metering, the effectiveness of these reforms will be undermined,” he warned.
NERC provided a detailed breakdown of metering rates over the past five years, underscoring the slow progress in addressing the issue.
In 2020, out of 11.84 million registered customers, only 39.36% were metered.
By 2021, the number of registered customers rose to 12.86 million, but the metering rate dropped to 36.47%.
In 2022, there were 12.15 million registered customers, with a slight improvement to a 42.22% metering rate.
By 2023, the metered customers had increased to 44.38% of the 13.16 million registered customers.
In 2024, the metering rate stands at 46.14%, with 6.15 million customers metered out of 13.33 million registered customers.
NERC is determined to hold DisCos accountable for their failure to meet metering targets.
During the fourth quarter 2024 Nigerian Electricity Supply Industry (NESI) stakeholders’ meeting, the commission reiterated its resolve to enforce compliance.
“DisCos must conclude the migration of all STS meters to prevent service disruptions,” the regulatory body warned.
The commission explained that the upgrade from the old Unistar meters to STS meters is essential to modernize the electricity supply system and enhance customer experience.
Customer Enumeration Still a Challenge
The slow pace of metering is compounded by poor customer enumeration across the distribution companies.
Dr. Ali highlighted that inaccurate customer records hinder the effective rollout of meters and other service improvements.
“Proper enumeration is the foundation for resolving metering challenges and ensuring efficiency,” he stressed.
As the January 1 deadline approaches, electricity customers are growing impatient with the prolonged metering crisis.
Many have criticized the DisCos for their inability to meet deadlines and provide accurate billing.
