Electricity distribution companies (DisCos) have expressed strong reservations over the Federal Government’s directive that prepaid electricity meters should be installed free of charge for all categories of consumers.
The operators faulted the announcement by the Minister of Power, Adebayo Adelabu, describing it as a political statement that failed to take into account the views of key stakeholders, particularly meter installers and providers.
Last Thursday, the Federal Government barred DisCos and installers from charging consumers for meters, warning that officials found extorting customers would face prosecution. Adelabu issued the directive during an inspection of newly imported smart meters at APM Terminals, Apapa, Lagos.
According to the minister, the meters—procured under the World Bank–funded Distribution Sector Recovery Programme—must be installed at no cost to consumers, regardless of their electricity band. He stressed that any demand for payment would be illegal.
However, DisCo officials who spoke anonymously said the so-called “free” meters would still be paid for by the DisCos over a 10-year period, arguing that the cost burden was being unfairly shifted to operators.
They noted that meter installers are not employees of DisCos and questioned who would bear the cost of installation if consumers were barred from paying.
“Those meters are not free in reality. Someone has to pay for them, and the government expects DisCos to shoulder the cost over time. Any capital expenditure must be recognised as allowable capex in tariff calculations; otherwise, it will damage our balance sheets,” a DisCo official said.
Another operator warned that the directive could worsen existing challenges in the power sector, recalling that DisCos were stripped of direct responsibility for metering during previous reforms.
“If the government insists that consumers must not pay, then it must clearly state who will pay the installers. DisCos are not the ones installing meters. That role was taken away from us years ago,” the source said.
The operators also warned that the minister’s declaration could undermine the Meter Asset Providers (MAP) scheme, which allows consumers to purchase meters directly and receive refunds through energy credits.
“People are now rejecting the MAP scheme because they believe meters are free for everyone. That is a wrong narrative. The free meters cannot cover the existing metering gap, and this confusion is already hurting local meter suppliers,” one official stated.
They urged the Federal Government and the regulator to prioritise cost recovery and stakeholder engagement before making public pronouncements.
“We agree consumers should not pay directly, but the government must be transparent about who bears the cost. If costs are not properly recovered, debts will pile up and operators will be forced to cut corners,” another DisCo source warned.
The operators further cautioned that the directive had already triggered tension between customers and DisCos, calling on the government to clarify the scope and limitations of the free meter initiative to manage public expectations.
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