The Nigerian Electricity Regulatory Commission (NERC) has issued a stern warning to electricity distribution companies (DisCos) across the country, condemning their illegal practice of forcing customers to pay for the replacement of faulty and obsolete meters.
The warning was issued on Monday, November 18, 2024, after reports surfaced that some DisCos in various regions were instructing their customers to apply and pay a set fee for the replacement of their faulty meters.
Violation of NERC’s Regulatory Order
In its statement, the NERC stated that this practice is a clear violation of its Order No. NERC/246/2021, which mandates the structured replacement of faulty and obsolete meters within the Nigerian electricity sector.
The regulatory body emphasized that this order clearly prohibits DisCos from forcing customers to pay for meter replacements or to migrate to estimated billing if their meters are found to be faulty or outdated.
Meter Replacement Should Be Free of Charge
According to the NERC, if a meter is found to be faulty or obsolete, it is the responsibility of the DisCo to replace the meter at no cost to the customer. This rule holds as long as the customer is not at fault for the damage.
The Commission reminded DisCos that it is their duty to ensure the proper functioning of electricity meters and that any faults not caused by the customer should be addressed at the company’s expense.
“The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies (DisCos) have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas,” the statement said.
“This instruction contravenes the Commission’s Order No. NERC/246/2021 on the structured replacement of faulty and obsolete meters in the Nigerian Electricity Supply Industry,” it added.
No Customer Should Be Moved to Estimated Billing
The NERC further clarified that no customer who already has a working meter should be forced into estimated billing because of a faulty or obsolete meter. Estimated billing, which often results in inflated charges, has been a longstanding issue in Nigeria’s power sector.
The regulatory body also reiterated that any action by DisCos that violates this directive will lead to enforcement of penalties for non-compliance.
“The Order clearly states that no customer with a meter should be forcefully migrated to estimated billing,” the statement noted.
Protecting Consumer Rights
The NERC emphasized its commitment to protecting the rights and interests of electricity consumers across Nigeria. The Commission has pledged to hold DisCos accountable for any breach of the established regulations and will ensure that proper sanctions are applied to companies that fail to comply.
“The Commission restates its commitment to protect customers’ interests and rights by ensuring compliance with established regulatory standards and enforcing regulatory penalties for non-compliance by its licensees,” the NERC statement said.
Consumers Urged to Report Violations
The NERC also encouraged consumers to report any incidents of non-compliance by DisCos, urging them to bring such issues to the Commission’s attention.
Electricity customers are advised to report any instances where they are asked to pay for meter replacements or where they are unjustly switched to estimated billing. The NERC has assured that it will investigate all complaints and take appropriate action against any erring DisCos.
The Growing Issue of Faulty Meters in Nigeria
Metering has been a persistent issue in Nigeria’s electricity sector, with many customers complaining about faulty meters and the practice of estimated billing. For years, Nigerian consumers have faced the frustration of receiving high electricity bills despite experiencing inconsistent power supply.
In many cases, consumers are left with no option but to accept inflated bills because of the absence of functional meters. The NERC’s order aims to address these concerns by ensuring that electricity companies take responsibility for faulty meters and replace them at no extra cost to the consumer.
However, reports of DisCos attempting to charge customers for meter replacements suggest that the issue of accountability in the sector remains unresolved.
DisCos’ Reactions and Consumer Concerns
While some DisCos have adhered to the regulatory standards set by the NERC, others have reportedly continued to enforce charges for meter replacements, citing the high cost of procuring and installing meters. These actions have raised further concerns among consumers, who are already burdened by the rising cost of living and frequent power outages.
