FG Bans DisCos From Charging Customers for Prepaid Meter Installation, Threatens Sanctions

The Federal Government of Nigeria has banned electricity Distribution Companies from charging customers for prepaid meter installation. The government also warned that any DisCo found violating the directive will face stiff regulatory sanctions. This decision aims to protect electricity consumers and accelerate nationwide metering under existing power sector reforms.

The announcement reinforces the government’s commitment to ending estimated billing and ensuring transparency in electricity consumption across the country.

The Nigerian Electricity Regulatory Commission (NERC) enforces this ban through an amended order. DisCos and installers must provide meters at no cost to customers. Any attempt to charge fees violates the law, inviting penalties. The government aims to close the metering gap, targeting five million unmetered customers with free smart meters.

Power Minister Adebayo Adelabu announces the arrival of 500,000 smart meters. These devices enhance accuracy and efficiency in billing. DisCos receive directives to expedite deployments, focusing on high-demand areas. Unmetered customers benefit from monthly energy caps, preventing estimated billing abuses.

Consumers face exploitation for years as DisCos demand payments for meters. Reports highlight cases where customers pay thousands of naira for installations. The FG's ban addresses these grievances, restoring trust in the power sector. Experts praise the initiative for promoting transparency and affordability.

The Nigerian Electricity Regulatory Commission (NERC) has set a ₦10,000 reconnection fee for Non-Maximum Demand (Non-MD) single-phase customers caught for meter bypass or tampering. Alongside this, offenders face fines of ₦100,000 (first offense) to ₦150,000 (subsequent offenses) for residential, single-phase, non-MD customers.

The ban takes effect immediately, applying to all 11 DisCos across Nigeria. Companies like Ikeja Electric, Eko Electricity Distribution Company, and Abuja Electricity Distribution Company receive warnings. The government monitors compliance through audits and consumer reports.

Customers apply for free meters through their DisCo's official channels. Online portals and customer service centers streamline the process. Applicants provide account details and proof of address. DisCos process requests within specified timelines, reducing wait times.

This policy aligns with the National Mass Metering Programme (NMMP). The initiative receives funding from the Central Bank of Nigeria and international partners. It boosts local manufacturing of meters, creating jobs and stimulating economic growth.

Nigeria FG Bans DisCos Prepaid Meter Charges: What It Means for You

The ban empowers consumers by eliminating upfront costs. Households save money previously spent on meters. Businesses benefit from accurate billing, improving financial planning. The shift reduces disputes between DisCos and customers.

Energy experts predict lower electricity theft rates with widespread metering. Prepaid systems allow users to monitor consumption in real-time. This encourages energy conservation and sustainable usage patterns.

Challenges remain in implementation. Some DisCos cite logistical hurdles in meter distribution. The government pledges support through training and resources. Consumer advocacy groups urge vigilance in reporting violations.

Sanctions for Charging Prepaid Meter Installation: Details and Implications

NERC outlines penalties for violations. First-time offenders face warnings and corrective orders. Repeat violations attract fines up to ₦100 million. Severe cases lead to management dismissals or license suspensions.

The policy impacts DisCos' revenue models. Companies shift focus to efficient service delivery. Investments in infrastructure become priorities over exploitative practices.

Consumers gain leverage in negotiations. Unresolved complaints escalate to NERC's dispute resolution forums. This system holds DisCos accountable.