Skip to content
Trending
Advertisement
Business

NERC approves N30bn for free electricity meters

A prepaid electricity meter installed on a residential building, illustrating NERC's N30bn free metering programme.

The Nigerian Electricity Regulatory Commission has approved N30bn for the installation of electricity meters for unmetered Band A customers and additional Band B consumers across the country.

The commission also directed electricity distribution companies to complete installations under the programme by May 31, 2027, warning that eligible customers must not be charged for meters provided through the initiative.

According to The PUNCH, the directive was contained in Order No. NERC/2026/121, which operationalises the third phase of the Meter Acquisition Fund.

NERC approves third metering phase

The regulator disclosed that the N30bn allocation would be distributed among Nigeria’s 11 electricity distribution companies according to their contributions to the fund.

Advertisement

The latest intervention is intended to ensure that remaining unmetered Band A customers receive meters while accelerating installation for Band B consumers.

According to the commission, distribution companies must ensure that the equipment is allocated fairly across states within their respective service areas.

The programme forms part of government efforts to address Nigeria’s electricity metering gap and reduce disputes associated with estimated billing.

Customers warned against paying for meters

NERC maintained that electricity meters supplied through the Meter Acquisition Fund must be installed without charges to eligible consumers.

Advertisement

The regulator directed that each meter must display the relevant distribution company’s name and the applicable phase of the programme.

The equipment must also carry the inscription “NOT FOR SALE.”

The commission warned distribution companies and their agents against demanding payment from customers for meters funded under the initiative.

It also clarified that where a distribution company relocates a customer’s connection point for its own revenue protection purposes, the company must bear the associated costs.

Advertisement

NERC introduces payment safeguards

To strengthen accountability, the regulator introduced a two-stage payment structure for companies supplying the meters.

Under the arrangement, 70 per cent of the contract value will be released after verification that the meters have been delivered.

The remaining 30 per cent will be paid after the installation has been completed and confirmed.

Distribution companies must also conduct transparent procurement processes involving qualified meter manufacturers, assemblers and meter asset providers.

The commission stated that pricing limits would be based on national bid data submitted during the September 2026 procurement cycle.

DisCos face sanctions over delays

NERC said distribution companies could face regulatory sanctions if their actions obstruct or delay the installation process.

It also required participating companies to submit relevant supply and installation agreements for monitoring.

The regulator maintained that the programme would improve electricity billing transparency and reduce disputes between consumers and distribution companies.

Although the funding has been approved, customers will receive meters through implementation arrangements managed by their electricity distribution companies.

The May 31, 2027 deadline applies to installations under this phase of the programme and does not guarantee that every unmetered electricity customer nationwide will receive a meter by that date.

Share
Keep reading

More gist like this

All Business