KEY POINTS
- NERC has threatened to withhold DisCos’ operational expenditure for failing to refund customers who paid for meters under the MAP scheme.
- Some DisCos have achieved only two per cent compliance on refunds, prompting the regulator to prepare direct financial penalties through the wholesale market.
- Refunds are issued as energy credits rather than cash, but many customers say repayments remain slow despite the formal start in April 2023.
The Nigerian Electricity Regulatory Commission, NERC, has signalled a far tougher stance on delinquent Distribution Companies after revealing that some operators have refunded only a fraction of the money owed to customers who paid upfront for meters as far back as 2018.
The regulator said a number of DisCos posted a mere two per cent compliance rate on the Meter Asset Provider refund, prompting the threat of financial penalties at the wholesale market level.
In a statement shared on its X page, the Commission quoted its Vice Chairman, Musiliu Oseni, as saying that the era of weak enforcement was over and that any breach of the approved refund schedule would attract immediate consequences.
He said the Commission had become concerned at the slow pace of repayments despite clear regulatory instructions issued under the MAP and National Mass Metering regulations.
Oseni explained that the regulator was prepared to use one of the most direct tools available to it by docking DisCos’ operational expenditure from their settlement accounts at the national wholesale market. The measure, he said, would ensure that customers receive the value of the meters they paid for, even if the companies fail to act voluntarily.
NERC prepares targeted enforcement as refund delays spark public frustration
He said: “You still have your operational expenditure 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.” Oseni added that strict timelines would now be imposed to avoid what he described as recurring nonchalance on the part of the utilities.
Under the MAP scheme launched in 2018, thousands of customers paid upfront to receive new meters but were never supplied with the devices. The refund framework, supervised by NERC, requires DisCos to return the cost of the meters to customers in the form of energy credits, rather than cash, spread over a period determined by each company’s financial capacity. Actual repayment commenced on 1 April 2023, yet many customers say they have seen little or no adjustment on their bills despite meeting all obligations.
The regulator said it would continue to monitor the refund process closely as it weighs further enforcement actions. The growing calls for accountability have added to wider unrest in the power sector, already strained by revenue shortfalls, regulatory vacancies and rising customer dissatisfaction.
For now, NERC insists that withholding DisCos’ operational funds remains a viable path to pushing faster compliance, signalling a new phase in the long-running struggle to stabilise customer-facing reforms in the electricity supply industry.
