The Nigerian Electricity Regulatory Commission (NERC) has issued a definitive mandate to power distribution companies (Discos) to swiftly complete the migration of all Standard Transfer Specification (STS) meters for their clientele. This directive was revealed during the Q4 Nigeria Electricity Supply Industry (NESI) Stakeholders Meeting, as shared on the commission’s official social media platform. To emphasize the importance of compliance, NERC warned that any Disco failing to fulfill this directive by January 2025 would face daily penalties, the specifics of which have not been disclosed. This decision underscores NERC’s commitment to ensuring uninterrupted power supply and service reliability within the Nigerian electricity sector.
In a broader context, the NERC’s directive is part of an ongoing effort to modernize the electricity metering landscape in Nigeria, which has long been plagued by outdated infrastructure and inefficiencies. The commission has reiterated the obligation of Discos to replace all obsolete or faulty meters without imposing any charges on customers. This is in alignment with the recently introduced Customer Protection Regulation 2023, which safeguards consumers against being billed for the replacement of malfunctioning or outdated metering systems, as well as the unauthorized transition to estimated billing practices.
The urgency of the situation becomes clear in light of reports indicating that approximately three million electricity customers could soon find themselves subjected to estimated billing or experiencing service interruptions due to non-compliance with the meter upgrade mandates. A consumer advocacy group has estimated that nearly half of the over 5.99 million metered customers in Nigeria might be adversely affected by government policy changes regarding the migration to STS meters. This potential fallout has raised significant concerns, especially as customers express their frustration over the implications of being forcibly switched to estimated billing.
Compounding the situation, some distribution companies, particularly in Lagos, have announced plans to phase out Unistar meters by November 14, 2024, citing issues related to the Token Identifier rollover. In this case, customers were instructed to pay for the migration to new meters, prompting significant backlash from affected users who find themselves in an untenable position. This controversy highlights the wider issue within the Nigerian electricity market regarding the management of consumer expectations and rights, particularly in terms of meter upgrades and replacements.
Interestingly, the producers of Unistar meters have countered claims of obsolescence, asserting that their devices, which employ card meter technology, are fully upgradeable and compatible with the emerging STS meter technology. This assertion raises questions about the motivations behind the Discos’ decision to phase them out, thereby placing the issue of meter compatibility and consumer responsibility at the forefront of the dialogue. The situation has garnered attention from regulatory bodies, such as the Federal Competition and Consumer Protection Commission, which has urged distribution companies to suspend the replacement of Unistar prepaid meters until further assessments can be conducted.
In conclusion, the NERC’s directive and the current issues surrounding meter upgrades reflect the intricate dynamics of Nigeria’s power supply sector. As the regulatory framework continues to evolve, the balance between modernization efforts and consumer protection will be critical. Stakeholders, including Discos, manufacturers, and consumers, must navigate these changes to ensure a fair and equitable transition that prioritizes continuous service delivery, safeguarding the rights and interests of all parties involved in the energy supply chain.
