Electricity distribution companies (DisCos) have expressed strong reservations over the directive by the Minister of Power, Adebayo Adelabu, that prepaid electricity meters must be provided free to all categories of customers.
Operators, who spoke anonymously due to the sensitivity of the issue, described the directive as a political statement made without adequate consultation with key stakeholders, including meter installers and asset providers.
Last Thursday, the Federal Government barred DisCos and meter installers from collecting any form of payment for meters, warning that officials found extorting customers would face prosecution. The minister issued the warning during an inspection of newly imported smart meters at APM Terminals, Apapa, Lagos.
Adelabu explained that the meters were procured under the World Bank–funded Distribution Sector Recovery Programme and must be installed at no cost to consumers, regardless of their electricity tariff band. He stressed that any demand for payment, either directly or indirectly, would amount to an offence.
According to DisCo operators, however, the meters being described as “free” would still be paid for by the DisCos over a 10-year period, raising concerns about cost recovery and financial sustainability.
They argued that meter installation involves capital expenditure that must be recognised in tariff calculations, warning that forcing DisCos to absorb such costs without regulatory backing would further weaken their balance sheets.
The operators also pointed out that meter installers are independent service providers, not employees of the DisCos, and questioned who would bear the cost of installation if customers were barred from paying.
“There is a cost to manufacturing, supplying and installing meters. Somebody must pay for it,” one operator said, adding that metering responsibilities were removed from DisCos years ago under previous reforms.
Several operators described the minister’s remarks as populist, arguing that they failed to address the issue of cost recovery, which they said was fundamental to the sustainability of the power sector.
They further warned that the declaration could undermine the Meter Asset Providers (MAP) scheme, under which customers can purchase meters directly and recover the cost over time through energy credits. According to them, many customers are now rejecting the MAP option, believing that free meters will be available to everyone.
Stakeholders noted that the government-provided meters are insufficient to cover the entire metering gap and are being supplied in batches, contrary to public perception created by the minister’s comments.
They urged the government and the electricity regulator to clarify the scope of the free meter initiative, identify eligible customer categories, and clearly state who would bear the cost of installation and supply.
The operators cautioned that failure to address these issues could worsen public misunderstanding, strain relationships between DisCos and customers, and threaten the survival of local meter manufacturers and installers.
While agreeing that consumers should not be unduly burdened, the DisCos insisted that transparency, stakeholder engagement and clear cost-recovery mechanisms were essential to avoid further debt accumulation and operational challenges in the power sector.