Electricity
DisCos Raise Concerns Over FG’s Directive on Free Prepaid Meters
By Otobong Gabriel, Abuja
Power distribution companies (DisCos) have raised concerns over the Federal Government’s directive that prepaid electricity meters must be provided free of charge to all categories of customers, describing the policy as impractical and lacking adequate stakeholder consultation.
The concerns followed a statement by the Minister of Power, Adebayo Adelabu, who warned that no electricity consumer should pay for meter installation and that any DisCo or installer found collecting money would be sanctioned.
The minister made the declaration during an inspection of newly imported smart meters at the Apapa Port in Lagos.
However, DisCos, speaking anonymously due to the sensitivity of the matter, said the directive appeared to be more of a political pronouncement than a carefully designed sector policy.
They argued that key stakeholders such as meter installers, Meter Asset Providers (MAPs), and local manufacturers were not consulted before the announcement.
According to the operators, prepaid meters are not truly free, noting that most of the devices were procured under the World Bank-supported Distribution Sector Recovery Programme (DISREP).
They explained that DisCos are expected to repay the cost of the meters over several years, raising concerns about who ultimately bears the financial burden.
The DisCos also expressed uncertainty over how meter installers, who are largely third-party contractors, would be paid under the new arrangement.
They warned that prohibiting customer payments without a clearly defined funding mechanism could disrupt ongoing meter deployment nationwide.
Furthermore, the operators cautioned that absorbing the full cost of meters and installations without regulatory approval or tariff adjustments could worsen their financial challenges.
They also warned that the directive could undermine the existing MAP scheme, as customers may delay or reject privately installed meters in anticipation of government-supplied free meters, despite limited availability.
The development comes amid ongoing efforts by the Federal Government to close Nigeria’s metering gap and eliminate estimated billing, a long-standing issue in the power sector.