Power distribution companies (DisCos) have expressed concerns over the Federal Government’s directive that prepaid meters must be provided free to all electricity consumers. The Minister of Power, Adebayo Adelabu, recently stated that meters procured under the World Bank–funded Distribution Sector Recovery Programme must be installed without charge, warning that any attempt to collect payment would be treated as an offence.
DisCo operators argue that the minister’s directive does not consider the practical and financial implications for stakeholders, including meter installers and providers. The operators explained that although the meters are declared “free” for consumers, the cost of procurement and installation will still fall on the DisCos, payable over ten years. They questioned why DisCos should bear the costs, noting that meter installers are independent contractors and not DisCo staff.
Operators also warned that the announcement could disrupt the Meter Asset Providers (MAP) scheme, which allows consumers to purchase meters directly and recover costs over time. With the government promising free meters for all, many consumers may reject the MAP scheme, undermining local meter suppliers and creating confusion about meter availability.
The DisCos emphasized the importance of cost recovery in the power sector, stating that every expenditure must be accounted for to prevent financial strain and ensure operational sustainability. They urged the government and the regulator to clearly define who will bear the cost of free meters and to provide accurate information to consumers to prevent tension and unrealistic expectations.
