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Electricity distribution companies have pushed back against a directive from the Minister of Power, Adebayo Adelabu, ordering prepaid electricity meters to be provided free of charge to all categories of customers.
Operators from several electricity distribution companies, who spoke on condition of anonymity, said the directive did not adequately address how the cost of meters and their installation would be funded, particularly for installers and meter providers.
On Thursday, the federal authorities barred electricity distribution companies and meter installers from collecting any payment from customers for prepaid meters, warning that any official or installer found doing so would be prosecuted.
“I want to mention that 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,” Adelabu said.
“It is an illegality. It is an offence for the officials of distribution companies across Nigeria to request a dime before installation; even the indirect installers cannot ask consumers for a dime. It has to be installed free of charge so that billings and collections will improve for the sector.”
DisCo operators, however, told The PUNCH that the distribution companies would eventually cover the cost of the metres advertised as free.
They claim that the government has stated that DisCos will pay the expense and recoup it over a ten-year period.
The operators questioned why the government wanted the DisCos to pay for installation, claiming they couldn’t.
“When you ask the DisCos to pay for any capital expenditure, we call it allowable capex. You have to allow it when computing their tariffs; otherwise, it makes their balance sheets toxic.”
Operators also raised concerns about installation costs, noting that meter installers are not DisCos’ employees, stating, “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.
“Did the minister consider all those? You said the people should not pay the installers; who should pay them? We, the DisCos, are not the ones installing meters. That role was taken away from the DisCos when Babatunde Fashola was the power minister.
“They said the DisCos have no business with metering. This is the result we are seeing today. Assuming the DisCos are the ones installing meters, you can force them to pay.
“We will all see the outcome of that pronouncement in the coming days. If the government can pay installers, no problem, but I’m not sure any DisCo will volunteer to pay the installers.”
