Electricity Subsidies
About three million electricity customers in Nigeria risk falling into estimated billing or experiencing power outages for failing to upgrade their prepaid meters, following the expiration of a government policy deadline on November 24, 2024.
Reports indicate that nearly half of the 5.9 million metered consumers are affected.
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EKO HOT BLOG reports that the Nigerian Electricity Regulatory Commission (NERC) had repeatedly urged customers to update their meters, emphasizing that the process was free and would not affect existing units. Distribution companies (DisCos) were directed to issue Key Change Tokens (KCTs) for the upgrade.
However, complaints poured in as customers reported technical glitches, power outages, and feedback that some meters, particularly Unistar models, could not be upgraded and required replacement.
Unistar Hitech Systems denied claims of obsolescence, asserting their meters are compatible with the STS technology. The Federal Competition and Consumer Protection Commission (FCCPC) intervened, mandating that DisCos bear replacement costs and warning against placing customers on estimated billing, a practice prohibited under NERC regulations.
Despite this, affected customers narrated their ordeals. An Ikeja Electric customer reported that five meters in an eight-flat property were phased out, leading to estimated bills of ₦268,000 per flat monthly. Others described prolonged darkness, rejected tokens, and unaddressed complaints.
DisCos Estimated Billing
NERC reiterated that meter replacements should be free unless damage was customer-induced, and customers must not be forced onto estimated billing during the process. Yet, DisCos reportedly defied these directives, leaving consumers burdened.
In response to the widespread frustration, Sunday Oduntan, Executive Director of the Association of Nigerian Electricity Distributors, assured that faulty or obsolete meters would be replaced at no cost, highlighting the financial losses incurred from outdated meters.
Consumer advocates criticized the DisCos’ handling of the upgrade, accusing them of exploiting customers. The Executive Director of the Electricity Consumer Protection Advocacy Centre, Princewill Okorie, argued that more than half of metered users risked losing access to fair billing, urging stricter oversight of DisCos and NERC.
The NERC insists that the upgrade is essential for operational efficiency, but for millions of Nigerians, unresolved challenges raise questions about the execution and fairness of the policy.
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