Power distribution companies (DisCos) have expressed reservations over the Federal Government’s directive that prepaid electricity meters be installed free of charge for all consumers.
Operators told DAILY GAZETTE anonymously that the directive, issued by Minister of Power Adebayo Adelabu, appeared political and did not take into account the input of key stakeholders, including meter installers and providers.
On Thursday, the Minister of Power ordered that meters procured under the World Bank–funded Distribution Sector Recovery Programme be installed at no cost to electricity customers.
Adelabu warned that any official or installer found extorting consumers would face prosecution.
“The meters must be installed free of charge for all consumers—free of charge! Anyone requesting payment is committing an offence,” Adelabu said during an inspection of newly imported smart meters at APM Terminals, Apapa, Lagos.
However, DisCo operators argued that the so-called “free” meters would ultimately be paid for by the DisCos over a 10-year period.
They questioned why the distributors should bear the cost of installation, especially as meter installers are not part of DisCo staff.
“Someone has to pay for the installation, and the government expects the DisCos to cover it.
“If the government can pay the installers, that’s fine, but DisCos cannot be forced to do so,” one operator explained.
DisCos also warned that the announcement could undermine the ongoing Meter Asset Providers (MAP) scheme, which allows customers to buy meters directly from providers.
Operators said public perception that all meters are free might discourage participation in MAP, affecting local meter suppliers and creating confusion over meter availability.
“The Minister’s statement threatens the MAP scheme. People now believe meters are free, even though the free meters cannot cover everyone. The government needs to clarify who qualifies for the free meters and which areas will be covered,” said another DisCo official.
Stakeholders stressed that any initiative in the power sector must consider cost recovery to maintain financial sustainability.
“The government should always factor in cost recovery. If installers are not to be paid, who will cover that cost? DisCos or the Ministry of Power? This needs clear communication,” an operator said.
The operators urged the government to provide clear guidance to avoid public confusion and maintain trust with consumers, warning that miscommunication could create tensions and disrupt ongoing power sector initiatives.
