DisCos protest free meter plan, as FG bans charges
Nigeria’s Power Minister, Adebayo Adelabu, on Thursday, directed electricity distribution companies (DisCos) and meter installers to provide smart meters to consumers free of charge, warning that officials found extorting money from consumers by demanding payments would face prosecution.
He issued the directive while inspecting newly imported smart meters at APM Terminals, Apapa, Lagos, which were procured under the World Bank–funded Distribution Sector Recovery Programme (DISREP).
“I want to mention that it is unprecedented that these meters are to be installed and distributed to consumers free of charge—free of charge! Nobody should collect money from any consumer. It is an illegality. It is an offence for the officials of distribution companies across Nigeria to request a dime before installation; even the indirect installers cannot ask consumers for a dime. It has to be installed free of charge so that billings and collections will improve for the sector.
“The first batch is 1.43 million meters, out of which we have received close to about a million meters. Currently, almost 150,000 meters have already been installed across all distribution companies in the country. And what we have today is close to 500,000 meters that we just received. They are all smart meters, and I believe that the journey of completely eliminating the meter gap in the Nigerian power sector has just begun,” Adelabu said.
He stated that it was an illegal for any DisCo official or installer to request money from consumers or beneficiaries. “We said it is free. We are not saying this behind closed doors. We are telling Nigerians that the distribution and installation of these meters in every location is free of charge, and it is declared an offence—an illegality—for any DisCo official or installer to request money from the beneficiaries of these meters. We will track and monitor this installation. We also await tip-offs,” the Minister said.
Adelabu further noted that a customer complaint desk which would receive reports of extortion would be set up by the government, adding that such reports would be investigated by the Nigerian Electricity Regulatory Commission (NERC) and state regulatory authorities. “Extortion is not allowed, but there must be confirmed cases of such extortion, and the officials involved—no matter how high—will be prosecuted. It will be publicised and serve as a deterrent to others with similar intentions,” he noted.
Speaking on the categories of consumers captured in the programme, the Minister said: “We are prioritising every Nigerian, every customer, every electricity user. The issue of Band A, Band B, or Band C is temporary; it is our systematic way of ensuring this reform reaches everyone. The meters will be given to all levels of customers and not restricted to a single band. I am committing to that.”
In a recent report by Punch however, Power distribution companies expressed doubt over the directive by the Minister of Power.
According to the report, operators who spoke anonymously with correspondents, described the Minister’s statement as political.
The operators said the so-called free meters as indicated by the Federal Government would be paid for by DisCos within a 10-year time-frame, adding that DisCos could not be the ones bearing the cost of installation, since meter installers are not DisCo workers.
“Those meters you see, someone has to pay for them, and the government expects the DisCos to bear the cost of the so-called free meters. They said the DisCos can pay it over 10 years.
“When you ask the DisCos to pay for any capital expenditure, we call it allowable capex. You have to allow it when computing their tariffs; otherwise, it makes their balance sheets toxic,” a DisCo official was reported to have said.
Some officials described Adelabu’s comment as populist, typical of a politician, adding that the free meter declaration would jeopardise the Meter Asset Providers (MAP) scheme, which allows the sale of meters to individuals who request them.
