“FREE METERS, FOUL PLAY?” DISCOS CRY FOUL OVER ADELABU’S DIRECTIVE
GREATRIBUNETVNEWS–THE Federal Government’s decision to distribute prepaid electricity meters free of charge has sparked controversy, with power distribution companies (DisCos) warning it could destabilize the sector. Here are the key issues:
– Cost Recovery Concerns: DisCo operators say the government’s directive is a “populist statement” that ignores cost recovery realities. “Those meters you see, someone has to pay for them. The government expects the DisCos to bear the cost. If you don’t allow recovery in tariffs, it makes our balance sheets toxic,” an official said.
– Installer Payments : Meter installation is handled by independent providers, raising questions about who pays them. “If consumers don’t pay, who pays the installers? The minister didn’t address that,” another operator said.
– MAP Scheme Undermined : The directive may undermine the Meter Asset Providers (MAP) scheme, which allows customers to purchase meters directly. Many consumers are rejecting MAP, leaving local suppliers at risk.
– Metering Gap : The imported meters can’t cover Nigeria’s estimated five million metering gap, and unrealistic promises may fuel public agitation and damage investor confidence .
Minister Adebayo Adelabu insists meters will be installed “free of charge,” with officials facing prosecution for extortion. The government aims to improve billing accuracy and revenue collection under the World Bank-funded Distribution Sector Recovery Programme
Operators urged the government to clarify the scope of the free meter programme, stressing that the imported meters cannot cover Nigeria’s estimated five million metering gap. They cautioned that unrealistic promises could fuel public agitation and damage investor confidence.
“We agree people should not pay, but the government must say who will. Every penny has to be recovered. Otherwise, the sector will collapse under debt,” a DisCo source warned
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