DisCos reject FG’s free meter plan

 

DisCos Reject FG’s Free Meter Plan

The recent directive by Nigeria’s Minister of Power, Adebayo Adelabu, mandating that prepaid electricity meters be distributed free of charge to all categories of consumers has sparked significant controversy within the power sector.

The Federal Government, through Adelabu, announced that no customer should pay for meters, stressing that any attempt by distribution company (DisCo) officials or installers to demand payment would be treated as an offence.

The meters, procured under the World Bank–funded Distribution Sector Recovery Programme, were presented as a solution to improve billing accuracy and revenue collection.

However, power distribution companies have openly rejected the plan, describing it as unrealistic and politically motivated. According to operators who spoke anonymously, the so-called free meters are not truly free, as the government expects DisCos to bear the cost of installation and repayment over a ten-year period.

They argue that this directive ignores the principle of cost recovery, which is fundamental to the sustainability of the electricity sector. DisCos maintain that meter installers are not their employees, and therefore, the government must clarify who will pay for their services if consumers are exempted.

Industry stakeholders further criticized the minister’s pronouncement as a populist statement that disregards the complexities of the sector. They warned that the directive could undermine the Meter Asset Providers (MAP) scheme, which has been operational for years and allows customers to purchase meters directly from providers with the option of reimbursement through energy credits.

With the government’s declaration, many consumers now believe meters are universally free, leading to confusion and rejection of the MAP scheme. This, according to DisCos, threatens the viability of local meter manufacturers and suppliers who rely on the MAP framework.

The operators also expressed concern that the government’s promise of free meters for all customers is misleading, as the available stock cannot bridge Nigeria’s massive metering gap, estimated at millions of households.

They insist that the government should have consulted with DisCos and meter manufacturers before making such commitments, to ensure clarity on funding, distribution, and sustainability. Without proper cost recovery mechanisms, they warn, the sector risks accumulating debt and destabilizing its already fragile financial balance.

While the Federal Government’s plan aims to ease consumer burden and improve transparency in electricity billing, DisCos view it as a policy that jeopardizes existing frameworks, ignores financial realities, and creates false expectations among the public.

The unfolding tension between government directives and industry realities highlights the persistent challenges in Nigeria’s power sector, where populist promises often clash with the need for sustainable investment and cost recovery.