“They are Not Upgradable”: FG Gives Order to DisCos to Replace Phased-Out Metres

“They are Not Upgradable”: FG Gives Order to DisCos to Replace Phased-Out Metres

  • Electricity distribution companies are required by the federal government to replace any phased-out meters
  • Due to a technological upgrade, it stated that the Unistar meters will soon stop functioning, preventing their users from vending
  • Vice Chairman of NERC underlined that Unistar meters will eventually need to be phased out because they are not upgradeable

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The federal government has mandated that electricity distribution firms replace any meters that are being phased out as a result of a meter upgrade.

FG gives order for DisCos to replace phased out metres
Before the deadline of November 14, discos have insisted that consumers get new meters. Photo Credit: Contributor
Source: Getty Images

It made this announcement through the Nigerian Electricity Regulatory Commission.

According to the commission, despite the fact that there is no order to phase out Unistar meters as stated, the meters will soon stop working owing to a technological upgrade, which will prevent their users from being able to vend.

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It stated that any meters that are now being replaced by discos must be substituted to prevent any inconvenience to customers' metering requirements.

Customers get new meters before deadline

Some Discos have demanded that customers get new meters before the deadline of November 14 as Nigeria works to solve the seven million metering deficit.

Musiliu Oseni, the Vice Chairman of NERC, told The PUNCH that the Discos are now handling the operational aspect of phasing out Unistar meters and that there is currently no official instruction on the subject.

According to Oseni, the Token Identifier Rollover is the root of the problem.

Oseni emphasised that Unistar meters are not upgradeable and will eventually need to be phased out. He said that if the meters were not upgraded, it would be difficult for customers to buy electricity.

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“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 emphasised that no client should be refused access to electricity or put on estimated billing throughout the phase-out process.

He pointed out that discos are required to reimburse clients if they are forced to buy meters under the MAP framework, so they must have a clear refund policy in place.

“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 emphasised.

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Ikeja Electric and Eko Electricity Distribution Company have been advised by the All Electricity Consumer Protection Forum to halt the decommissioning of electricity meters and to wait for official regulatory approval from NERC before implementing the phase-out.

The forum voiced dissatisfaction with the decision to phase out meters without a replacement strategy in a letter dated October 15, 2024, written by Adeola Samuel-Ilori, its National Coordinator.

DisCo releases new prices for prepaid meters

Legit.ng earlier reported that the Eko Electricity Distribution Company (EKEDC) announced new pricing for an increase for prepaid metres installed under the Metre Asset Provider (MAP).

The new pricing included the costs for single-phase and three-phase meters from six different MAP vendors.

In a statement posted on its official X account, EKEDC revealed that the cost of prepaid meters has been set between N129,000 and N247,000, depending on the vendor and the type of meter.

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Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng