Power distribution companies reject Federal Government free meter plan
Power distribution companies reject Federal Government free meter plan
Power distribution companies (DisCos) across Nigeria have rejected the Federal Government’s proposed free electricity meter plan, raising concerns over funding, implementation, and regulatory clarity, in a development that could further delay the resolution of the country’s long-standing metering gap.
The plan, announced as part of efforts to curb estimated billing and protect consumers from arbitrary charges, proposed the mass distribution of free meters to electricity users nationwide. However, DisCos argue that the initiative, as currently designed, is unsustainable and risks undermining the already fragile power distribution sector.
According to industry sources, the DisCos insist that there was inadequate consultation before the announcement of the programme. They contend that the cost implications of procuring, installing, and maintaining meters were not clearly addressed, especially at a time when distribution companies are grappling with revenue shortfalls, high energy theft, and poor liquidity across the power value chain.
The electricity distributors also expressed concern over the funding structure of the proposed scheme. While the Federal Government indicated that the meters would be provided at no cost to consumers, DisCos say there is no clear framework detailing who would bear the financial burden in the long term. They warned that any plan that shifts the cost to distribution companies without proper compensation could worsen their financial position and affect service delivery.
Another point of contention is the regulatory process surrounding meter procurement and deployment. The DisCos argue that bypassing existing frameworks, such as the Meter Asset Provider scheme, could create confusion, disrupt ongoing investments, and discourage private sector participation in the metering process. Some companies also fear that government-led procurement may result in delays, quality issues, or logistical challenges that could slow down deployment rather than accelerate it.
The Federal Government has consistently maintained that closing the metering gap is critical to restoring trust between electricity providers and consumers. Millions of Nigerians remain unmetered, leaving them vulnerable to estimated billing, a practice that has been widely criticised by consumer groups and civil society organisations.
Despite the DisCos’ resistance, stakeholders say dialogue between the government, regulators, and electricity distributors will be necessary to break the deadlock. Analysts warn that without a clear, transparent, and jointly agreed metering strategy, the power sector risks remaining trapped in a cycle of consumer dissatisfaction, revenue losses, and stalled reforms.
