NERC orders automated meter cost reimbursement

Prepaid meters.

Targets N20.33b recovery in 12 months
The Nigerian Electricity Regulatory Commission (NERC) has issued an amended regulatory order mandating full automation of meter cost reimbursement for customers who procured meters under the Meter Asset Provider (MAP) framework, while directing electricity distribution companies (DisCos) to fast-track recovery of outstanding obligations estimated at N20.33 billion.
 
The Order NERC/2026/025, effective from March 1, 2026, amends the earlier reimbursement directive issued in 2023 and seeks to strengthen compliance enforcement, improve customer transparency, and address mounting complaints over delayed repayments.
 
The Commission said the new instrument was issued pursuant to Section 226 of the Electricity Act, which empowers it to make regulations necessary for implementing sectoral provisions, including the Meter Asset Provider and National Mass Metering Regulations 2021.
 
Under the amended framework, the Commission observed that DisCos have failed to fully meet reimbursement obligations to customers who paid upfront for meters within the MAP arrangement.
 
The Commission’s review conducted in February 2026 showed that electricity distribution companies were yet to clear an outstanding reimbursement balance of N20.33 billion as at December 31, 2025, reflecting persistent implementation gaps.
 
According to the order, the review also confirmed rising customer dissatisfaction linked to delayed reimbursement payments, with multiple complaints lodged with the Commission over implementation inefficiencies.
 
To address the challenge, the regulator introduced a fully automated reimbursement system aimed at eliminating manual processing delays and enhancing accountability in the metering value chain.
 
“All reimbursements to customers for meters procured under the MAP Framework shall be fully automated on customer accounts. DisCos shall ensure that the total cost of a MAP meter is recognised as credit on the customer’s account upon activation of the meter and disbursed automatically as monthly credits over the approved amortisation period,” the order mandates.

The Commission further prohibited DisCos from using meter reimbursement credits to offset legacy customer debts.

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