…says no license is bigger than their regulator
With the transition to state electricity regulatory commissions in full swing, the Nigerian Electricity Regulatory Commission (NERC) has cautioned electricity Distribution Companies (DisCos) to ensure full cooperation with state regulators.
Speaking at 4th Nigerian Electricity Supply Industry stakeholders meeting in Abuja, Musiliu Oseni, NERC Vice Chairman, emphasised the need for synergy among both parties, stating that no licensee is bigger than their regulator.
Oseni, in an earlier engagement had said that since the enactment of the electricity Act in 2023, which empowers states to take charge of their electricity market, only 15 states have so far gotten their transfer order. He noted that of these, 11 states have crossed the six-month transitional period, but only eight out of the eleven are currently operational.
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He challenged the DisCos to improve publicity and meters rollout speed, noting that the government has made the investment so the DisCos need to step up. Oseni also revealed that there are currently 600,000 to 700,000 meters available in the country.
Speaking on compliance to the Meter Asset Provider (MAP) refunds and installations by DisCos, Oseni said that defaulters would face necessary sanctions.
“You still have your Operational Expenditure (OPEX) at the national wholesale market level. If you refuse to refund customers, that money can be withheld from your OPEX until you have done so.” He insisted that strict timelines be issued immediately to ensure compliance.
Also speaking at the event, Nathan Shatti,
NERC Commissioner for Corporate Services, decried that the poor compliance of DisCos to the Meter Asset Provider (MAP) refunds and installations, noting that Abuja and Kano DisCos have achieved only 2 percent compliance on refunds.
Addressing the backlog of paid-for but uninstalled meters, he rejected technical excuses, stating that “If your network is not ready for metering, do not collect people’s money.”
He further observed that for every transformer or meter not installed, DisCos incur losses, hence it is in their interest to meter customers and fix transformer-related issues.
He also revealed that over 350,000 meters are yet to be migrated to the new STS standard, demanding immediate cleanup of obsolete data.
Dafe Akpeneye, NERC Commissioner, Legal, Licensing and Compliance, dismissed the excuse from DisCos that they cannot locate thousands of meters because customers moved them without authorisation.
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.
