The Federal Government has issued a stern warning to power distribution companies (Discos), emphasizing the necessity for accurate metering and discouraging estimated billing. In a recent meeting with investors/owners of Discos in Lagos State, the Nigerian Electricity Regulatory Commission (NERC) highlighted consumers’ dissatisfaction with estimated bills and the urgent need for meter provision.
The lack of sufficient meters has been a persistent challenge in the power sector, leading to over-billing of consumers by Discos. A recent report revealed that over 7.1 million unmetered electricity consumers were overbilled approximately N105 billion between January and September 2023.
NERC reiterated the obligation of Discos to provide meters, stressing that metering is crucial for addressing liquidity issues in the sector. Sanusi Garba, the NERC Chairman, emphasized consumers’ desire to pay for actual consumption rather than estimated bills, underscoring the importance of closing the metering gap in the value chain.
Eriye Onagoruwa, Team Lead (Power) at the Office of the Special Adviser on Energy to the President, highlighted the significant metering gap in the sector and outlined initiatives to address it, including the Presidential Metering Initiative.
Furthermore, Nathan Rogers, Commissioner of Finance and Management Services at NERC, clarified customer rights regarding meter payment, emphasizing that customers should not pay for meters if Discos do not have them in stock. He emphasized that once customers pay, Discos must install meters at no additional cost and cannot increase meter prices for already paid customers.
Dafe Akpeneye, Commissioner of Legal, Licensing, and Compliance at NERC, emphasized the importance of communication between Discos and customers awaiting meter installation, urging Discos to provide installation dates promptly after payment.
To curb overbilling, NERC has imposed sanctions on Discos, including a deduction of N10,505,286,072 from their annual allowed revenues during the next tariff review. Additionally, Discos are required to issue credit adjustments to over-billed unmetered customers for the period January to September 2023 and publish the list of beneficiaries in national dailies and on their websites by March 31, 2024.
The regulatory measures aim to protect electricity consumers from arbitrary billing practices and ensure fair and transparent billing by Discos across Nigeria.
