Nigeria's various electricity distribution companies (DisCos) said that the Federal Government’s announcement that smart meters must be provided and installed “free of charge” is unrealistic unless officials explain who will pay for supply and installation.
The Minister of Power, Adebayo Adelabu, inspected newly imported meters and declared the rollout “free of charge,” saying the programme , part of the World Bank-funded Distribution Sector Recovery Programme , will bring about 3.4 million meters in two batches.
“It is unprecedented that these meters are to be installed and distributed to consumers free of charge—free of charge! Nobody should collect money from any consumer. It is an illegality,” he said.
But DisCo operators have said that the government’s statement ignored cost-recovery realities and the role of meter installers.
“Those meters you see, someone has to pay for them, and the government expects the DisCos to bear the cost of the so-called free meters.
"They said the DisCos can pay it over 10 years,” one official said.
“We need to know that meter installers are not staff of the DisCos.
They are already asking who will pay them if the consumers do not pay.”
Operators have also warned that the announcement could undermine the existing Meter Asset Provider (MAP) scheme and confuse consumers.
“People are now rejecting the Meter Asset Providers scheme because they have heard that meters are free,” an operator said, urging government clarity on which customers will be covered.
Government officials say nearly 500,000 meters have arrived and about 150,000 have been installed so far, and regulators will monitor installations and investigate reported extortion.
“We will track and monitor this installation. We also await tip-offs,” Adelabu said.
DisCos called for urgent talks with the ministry, meter manufacturers and regulators to agree who bears costs and how the rollout will protect local suppliers and the MAP scheme.
