Why We Can't Locate Thousands of Meters - DisCos

Challenges Faced by Electricity Distribution Companies in Nigeria

Electricity Distribution companies (DisCos) in Nigeria have faced significant challenges, particularly in locating thousands of meters that have been relocated by customers. This issue was highlighted during the 4th Nigerian Electricity Supply Industry (NESI) Stakeholders' meeting held in Abuja and organized by the Nigerian Electricity Regulatory Commission (NERC). The discussion brought to light several pressing concerns within the electricity distribution sector.

NERC's Response to DisCos' Excuses

Dafe Akpeneye, Commissioner for Legal, Licensing and Compliance at NERC, dismissed the excuse provided by DisCos, drawing a parallel to the banking sector. He argued that just as a 'Post No Debit' order forces a bank customer to visit a branch, DisCos must use their vending platforms to enforce compliance.

"If you don't know where the meter is, the customer shouldn't be able to vend. Issue a public notice that you cannot identify these meters. Block them from vending and take them off your system until the people concerned come forward," he said. This approach aims to ensure that DisCos are held accountable for the meters they distribute.

Refund Issues and Poor Performance

Nathan Shatti, Commissioner for Corporate Services at NERC, expressed concern over the slow pace of electricity distribution companies in paying back customers who purchased meters under the Meters Asset Provider (MAP) initiative. According to Daily Trust, the MAP program allows customers to pay for electricity meters with the promise of refunds in the form of electricity credits. However, Shatti noted poor performance by specific utilities, with Abuja and Kano DisCos achieving only 2% compliance on refunds.

He warned DisCos to stop behaving as if they are doing customers a favor. On the backlog of paid-for but uninstalled meters, he rejected technical excuses, stating, "If your network is not ready for metering, do not collect people's money." Shatti further emphasized that for every transformer or meter not installed, DisCos incur losses, which is in their interest to address.

Addressing Data Migration and Infrastructure Issues

Shatti also revealed that over 350,000 meters are yet to be migrated to the new STS standard, demanding an immediate cleanup of obsolete data. This migration is crucial for ensuring the efficiency and reliability of the electricity distribution network.

NERC's Warning to DisCos

Dr. Musiliu Oseni, Vice Chairman of NERC, issued a stern warning to DisCos regarding their cooperation with new state regulators. He emphasized that no licensee is bigger than their regulator. Oseni also revealed that there are currently 600,000 to 700,000 meters available in the country and challenged utilities to improve publicity and rollout speed. He noted that the government has made the investment, and it is time for DisCos to step up their efforts.

Clarification on NERC Commissioners' Tenure

Addressing recent media misinformation regarding the tenure of NERC Commissioners, Dr. Oseni clarified the 'Staggering Principle' embedded in Section 36 of the Electricity Act. This principle was exported from the Electricity Power Sector Reform Act (EPSRA) and applied only to the pioneer Commission. Subsequent Chairmen and Commissioners have 5-year tenures as provided in Section 36 (1) of the EA. This clarification aims to dispel any confusion about the regulatory framework governing NERC.

Conclusion

The issues raised during the NESI Stakeholders' meeting highlight the urgent need for DisCos to address their operational inefficiencies. From locating meters to managing refunds and migrating data, the challenges are multifaceted. With NERC's continued oversight and the implementation of necessary reforms, the goal is to enhance the reliability and efficiency of the electricity distribution sector in Nigeria.