NERC Orders DisCos To Replace Obsolete Meters

The Nigerian Electricity Regulatory Commission (NERC) has
mandated the electricity Distribution Companies (DisCos) to replace
faulty and obsolete meters for their customers.

The effective date, according to the commission, was on March 4,
2021.

This was made known in Order No. NERC/246/2021 the commission
issued on March 4, 2021.

Titled: “In the matter of the order on structured replacement of
faulty and obsolete end-user customer meter in NESI,” the
commission submitted seven million customers in the Nigerian
Electricity Supply Industry (NESI) are unmetered.

It said that its customer enumeration data that made the
revelation estimated that additional three million meters are
obsolete and due for replacement.

NERC noted the existence of unmetered customers contributes to
the threat of financial stability of the electricity market.

According to the order: “The Commission notes that over 7
million customers are currently unmetered as indicated by customer
enumeration data. It is also estimated that an additional 3
million meters are currently obsolete and due for replacement.

“The existence of a large population of unmetered customers
contributed to threats
affecting the financial viability of NESI as unmetered end-use
customers expressed
deep dissatisfaction with the estimated billing methodology.

“The revenue assurance objectives of DisCos have also been
challenged by being unable to properly account for the utilisation
of electricity by end-use customers”.

The commission orders as follows –

“A. DisCos shall grant priority to the metering of unmetered
customers under the National Mass Metering Program.

“B. DisCos may replace faulty/obsolete meters under the National
Mass Metering Program but these replacements must be done in strict
compliance with the

“Metering Code and other regulatory instruments of the
Commission.

C. DisCos shall inspect meters of metered end-use customers and
the replacement notice shall contain the following –

I. The date of inspection.

ii. Name, designation and signature of the officer that
inspected the meter.

iii. The fault identified in the meter.

iv. The date for the installation of the replacement meter.

D. The Commission shall be copied on all replacement notices
issued to end-use customers for the purpose of conducting random
reviews of the replacement exercise.

E. New meters must be installed upon the removal of the
faulty/obsolete meter and under no circumstances shall the customer
be placed on estimated billing on account of the DisCo’s failure to
install a replacement meter after the removal of the
faulty/obsolete meter.

F. The customer and DisCo representative shall jointly note the
units on the meter being replaced and the customer must be credited
with these units within 48 hours after the installation of the
meter.

G. Customers shall only be billed for loss of revenue where the
DisCo establishes meter tampering, by-pass or unauthorised access
as contained in NERC Order/REG/ 41/2017 on Unauthorised Access,
Meter Tampering and Bypass.

H. Activation tokens shall be issued to customers immediately
after replacement of the
faulty/obsolete meter.

I. DisCos shall file monthly returns with the Commission on the
replacement of faulty/obsolete meters along with their proposal for
the decommissioned meters.

16. This Order may be cited as the Order on the Structured
Replacement of Faulty/Obsolete Meters of End-Use Customers.”

The Nigerian Electricity Regulatory Commission (NERC) has
mandated the electricity Distribution Companies (DisCos) to replace
faulty and obsolete meters for their customers.

The effective date, according to the commission, was on March 4,
2021.

This was made known in Order No. NERC/246/2021 the commission
issued on March 4, 2021.

Titled: “In the matter of the order on structured replacement of
faulty and obsolete end-user customer meter in NESI,” the
commission submitted seven million customers in the Nigerian
Electricity Supply Industry (NESI) are unmetered.

It said that its customer enumeration data that made the
revelation estimated that additional three million meters are
obsolete and due for replacement.

NERC noted the existence of unmetered customers contributes to
the threat of financial stability of the electricity market.

According to the order: “The Commission notes that over 7
million customers are currently unmetered as indicated by customer
enumeration data. It is also estimated that an additional 3
million meters are currently obsolete and due for replacement.

“The existence of a large population of unmetered customers
contributed to threats
affecting the financial viability of NESI as unmetered end-use
customers expressed
deep dissatisfaction with the estimated billing methodology.

“The revenue assurance objectives of DisCos have also been
challenged by being unable to properly account for the utilisation
of electricity by end-use customers”.

The commission orders as follows –

“A. DisCos shall grant priority to the metering of unmetered
customers under the National Mass Metering Program.

“B. DisCos may replace faulty/obsolete meters under the National
Mass Metering Program but these replacements must be done in strict
compliance with the

“Metering Code and other regulatory instruments of the
Commission.

C. DisCos shall inspect meters of metered end-use customers and
the replacement notice shall contain the following –

I. The date of inspection.

ii. Name, designation and signature of the officer that
inspected the meter.

iii. The fault identified in the meter.

iv. The date for the installation of the replacement meter.

D. The Commission shall be copied on all replacement notices
issued to end-use customers for the purpose of conducting random
reviews of the replacement exercise.

E. New meters must be installed upon the removal of the
faulty/obsolete meter and under no circumstances shall the customer
be placed on estimated billing on account of the DisCo’s failure to
install a replacement meter after the removal of the
faulty/obsolete meter.

F. The customer and DisCo representative shall jointly note the
units on the meter being replaced and the customer must be credited
with these units within 48 hours after the installation of the
meter.

G. Customers shall only be billed for loss of revenue where the
DisCo establishes meter tampering, by-pass or unauthorised access
as contained in NERC Order/REG/ 41/2017 on Unauthorised Access,
Meter Tampering and Bypass.

H. Activation tokens shall be issued to customers immediately
after replacement of the
faulty/obsolete meter.

I. DisCos shall file monthly returns with the Commission on the
replacement of faulty/obsolete meters along with their proposal for
the decommissioned meters.

16. This Order may be cited as the Order on the Structured
Replacement of Faulty/Obsolete Meters of End-Use Customers.”