Electricity consumers who invested in the Meter Asset Provider (MAP) initiative of the federal government are growing increasingly frustrated, seeking refunds from Electricity Distribution Companies (DisCos). Most DisCos are showing reluctance in complying with the repayment directive issued by the Nigerian Electricity Regulatory Commission (NERC) following the initiative’s failure.
The NERC had approved a regulation, effective April 3, 2018, allowing third-party providers (Meter Asset Providers) to supply, install, and maintain end-user meters, aiming to bridge the metering gap and foster competitive meter services in the electricity industry.
Despite the 10-15 years of technical usefulness outlined in the regulation, DisCos are obligated to meet metering targets set by the Commission. However, on April 1, 2023, the NERC directed DisCos to reimburse customers who paid for meters under the MAP Scheme, offering energy credits as the repayment method.
Investigations reveal that many DisCos have not fully adhered to the directive, exacerbating concerns, especially with recent tariff adjustments. Kunle Olubiyo, President of the Nigeria Consumer Protection Network, attributes these non-compliances to the weaknesses in the Regulatory Ecosystem.
“The regulatory compromises happen where the Regulatory Ecosystem has demonstrated a lack of capability and capacity to discharge oversight duties,” commented Olubiyo. He emphasized that this regulatory uncertainty has led to a decline in customers’ confidence in the industry.
While some DisCos claim compliance, such as Kano Disco and Ikeja Electric, figures are not disclosed. The head of Corporate Communications at Kano Disco, Sani Bala Sani, stated they have commenced refunds for customers who acquired MAP meters, reporting monthly compliance to NERC. Ikeja Electric confirmed compliance but did not provide specific figures.
Eko Disco’s general manager, Babatunde Lasaki, stressed their commitment to implementing the NERC directive, highlighting steps taken to build customer confidence and improve service delivery.
The Meter Asset Provider Regulation, effective since April 3, 2018, initially mandated DisCos to reimburse customers through energy credits over a period of 36 months. However, financial challenges faced by DisCos have delayed these reimbursements. In response, NERC revised the commencement date and reimbursement period to April 1, 2023, and 10 years, respectively. This adjustment aligns with the average useful life of prepaid meters and current financing terms adopted by financial institutions, ensuring fairness, transparency, and accountability in the reimbursement process under the MAP framework.