DisCos Oppose FG’s ‘Free Meter’ Directive

Power distribution companies (DisCos) have expressed strong reservations over the directive by the Minister of Power, Adebayo Adelabu, that prepaid electricity meters should be provided and installed free of charge for all categories of consumers.

The Federal Government had, on Thursday, barred DisCos and meter installers from collecting any payment for meters, warning that officials found extorting customers would be prosecuted.

Adelabu gave the directive during an inspection of newly imported smart meters at APM Terminals, Apapa, Lagos, procured under the World Bank–funded Distribution Sector Recovery Programme.

The minister insisted that the meters must be installed at no cost to consumers across all service bands, stressing that any demand for payment by DisCo officials or third-party installers would constitute an offence.

According to The Punch Newspaper, operators in the electricity distribution segment have described the pronouncement as unrealistic and largely political, noting that the cost of the “free” meters would still have to be borne by a party—most likely the distribution companies—over a period of about 10 years.

They maintained that meter installers are independent service providers and not employees of the DisCos, raising concerns over who would pay for installation if customers were barred from doing so. According to them, compelling DisCos to shoulder the cost without clear cost-recovery provisions would worsen their already fragile financial positions.

Industry sources explained that any capital expenditure, including metering, must be recognised in tariff computations to allow operators recover their investments, warning that failure to do so would further destabilise the sector.

The DisCos also warned that the declaration of free meters for all customers could undermine the Meter Asset Providers (MAP) scheme, under which customers can purchase meters and be reimbursed through energy credits over time. They noted that many customers were already rejecting the MAP option after the minister’s statement, believing that government-provided meters would be sufficient for everyone.

Operators stressed that the free meters being imported could not close the existing metering gap nationwide and urged the government to clearly define the categories and locations of beneficiaries, rather than making blanket statements that could mislead the public.

They called on the Federal Government and the electricity regulator to engage all stakeholders, including DisCos, meter manufacturers and installers, to design a sustainable framework that ensures transparency, proper funding and cost recovery, while protecting consumers.

According to them, while the goal of relieving consumers of upfront metering costs is commendable, the government must clearly state who will bear the financial burden and how it will be recovered, warning that vague directives could fuel disputes, weaken investor confidence and further strain the power sector.