NERC Issues New Instruction to DisCos Over Metre Refund to Consumers

• NERC has mandated that all electricity distribution companies disclose the consumer refunds they have provided
• The regulator mandated that the reimbursement details be made available on company websites in order to encourage transparency
• The MAP framework provides for the provision and maintenance of end-use meters as a service by third-party investors

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Nigerian Electricity Regulatory Commission has ordered all power distribution firms to make public the refunds they have given to consumers who bought meters through the Meter Asset Providers program.

On Monday, NERC made this announcement on its social media accounts.

The commission convened the inaugural meeting of the Nigerian Electricity Supply Industry Stakeholders in 2025 on Monday.

According to the MAP framework, third-party investors can provide and maintain end-use meters as a service, and customers who use these meters pay metering service fees.

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NERC regulation states that “where a customer elects to make upfront payments for meters under these regulations, the cost of the meter shall be refunded through energy credits by the distribution licensee. The reimbursement schedule shall be as approved by the commission, having regard to an evaluation of the financial standing of the distribution licensee.”

Consumers not satisfied

Consumer advocacy groups have voiced their dissatisfaction with the discos' inconsistent refunding of customers who purchased meters through the MAP program.

In order to promote openness and encourage consumers to participate in the program, the regulator ordered that the refund details be posted on their websites.

“NERC has directed Discos to publish details of MAP refunds on their websites for transparency. This will demonstrate commitment and consistency to the scheme and encourage customers,“ the commission stated.

The Federal Government says it is working to close the metering gap, which includes more than seven million unmetered users.

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Olu Verheijen, President Bola Tinubu's Special Advisor on Energy, has said that the government intends to meter all consumers in order to lower industry losses.

“The government is intervening in the short term by making sure that the registered customers within the Disco have meters because no matter what your tariff is, you need to make sure that you can collect and reduce your collection losses. And so, that’s one of the interventions. You’ve heard about the Presidential Metering Initiative, which looks to consolidate all the different metering initiatives that are funded by different entities.

“And so, we have the ability to know what your consumption is, what you can afford to pay, and make sure that we’re collecting the revenues from that and improving cash flow that way. It’s the first approach to making sure that DisCos have the financial capacity or cash flows that are required to drive investments in reliability and green access,” she stated.

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The commission revealed that in order to discuss the status of the Nigerian electricity supply industry, it hosted its first NESI Stakeholders meeting of 2025 at its offices.

The tariff methodology and the effects of the state transition, NESI liquidity, the market's financial assessment, and the shift to a multi-tier electricity market in relation to the state energy regulatory commissions were among the subjects covered.

“The quarterly meeting brings together energy stakeholders to discuss the state of the NESI and address critical issues in the sector,” the commission said.

NERC asks DisCos to justify requests for higher rates

Legit.ng reported that as Nigerian electricity distribution companies (DisCos) continue to clamour for an increase in electricity tariffs, the Nigerian Electricity Regulatory Commission (NERC) has directed them to submit financial plans to justify their requests.

This includes investment plans showing what they want to do with the additional income expected from a tariff increase.

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The directive was contained in an order from the NERC Chairman, Sanusi Garba.

Source: Legit.ng