Power Distribution Companies Face Sanctions Over Slow Metering

Electricity Distribution Companies (DisCos) have come under intense scrutiny over their slow metering rollout and dismal refund performance, as the Nigerian Electricity Regulatory Commission (NERC) revealed that between 600,000 and 700,000 electricity meters are currently available for nationwide installation.

Speaking at the 4th Nigerian Electricity Supply Industry (NESI) Stakeholders Meeting in Abuja, NERC vice chairman Dr Musiliu Oseni challenged the utilities to accelerate meter deployment, saying emphatically, “The government has invested, so the DisCos need to step up their efforts on publicity and installation speed.”

According to a statement posted on the Commission’s X handle, the meeting marked Oseni’s final NESI stakeholders’ session in his capacity as vice chairman.

Dr. Oseni threatened financial sanctions against lagging DisCos.

Proposing an innovative enforcement mechanism, he said, “You still have your Operational Expenditure (OPEX) at the national wholesale market level. If you refuse to refund customers, that money can be withheld from your OPEX until you have done so.”

He demanded immediate issuance of strict timelines to compel compliance and accountability.

The vice chairman highlighted a critical sector crossroads amid the complete transition to State Electricity Regulatory Commissions.

He issued a stern warning to DisCos on regulatory compliance: “No licensee is bigger than their regulator.”

Dr. Oseni stressed that all DisCos must fully cooperate with emerging state regulators or face consequences.

Dr. Oseni also took time to clarify recent misinformation circulating about NERC Commissioners’ tenure. Explaining the “Staggering Principle” embedded in Section 36 of the Electricity Act, which was initially applicable only to the pioneer Commission, he affirmed that all subsequent chairmen and commissioners serve five-year terms, as provided by law.

With the sector at a crucial juncture, the clear message from NERC leadership was one of accountability, speed, and respect for regulations.

Dr. Oseni further reaffirmed the position of the Commission: “No licensee is bigger than their regulator,” signaling that the era of tolerance for delays, excuses, and disobedience is over.

The sector awaits firm follow-up actions as DisCos face heightened oversight to meet the urgent metering and refund demands of Nigerian electricity consumers.

Additionally, the NERC Commissioner for Corporate Services, Nathan Shatti, stated, “Abuja and Kano DisCos have achieved only two per cent compliance on refunds to customers,” highlighting a significant gap in Meter Asset Provider (MAP) refund obligations. Commissioner Shatti was scathing in his critique of excuses from DisCos regarding meter installations, warning bluntly, “If your network is not ready for metering, do not collect people’s money.”

He underscored that failure to install meters and address transformer issues leads to revenue losses for DisCos themselves, forewarning, “It is in their interest to meter customers and fix transformer-related issues.”

Addressing the issue of thousands of meters apparently lost or untraceable, NERC Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye, dismissed DisCos’ claims that meters were moved without authorisation by customers. Drawing a compelling analogy with banking, he said, “Just as a ‘Post No Debit’ order forces a bank customer to visit a branch, DisCos must use their vending platforms to enforce compliance.” His directive was unequivocal: “Issue a public notice that you cannot identify these meters. Block them from vending and remove them from your system until the individuals concerned come forward. ”Highlighting data management challenges, Commissioner Shatti revealed a significant backlog, emphasising that “over 350,000 meters are yet to be migrated to the new STS standard,” and called for an “immediate cleanup of obsolete data” to improve operational efficiency.