DisCos Face Sanctions As NERC Decries Poor MAP Refund Compliance

The Nigerian Electricity Regulatory Commission (NERC) has threatened to withhold the Operational Expenditure (OPEX) entitlements of electricity Distribution Companies (DisCos) at the national wholesale market level over their failure to refund customers for Meter Asset Provider (MAP) payments.

NERC’s warning was a reaction to reports that some DisCos have achieved as little as two per cent performance in refunding customers who paid for MAP meters.

A statement obtained by THE WHISTLER on NERC’s X handle (formerly Twitter) on Wednesday, quoted NERC’s Vice Chairman, Dr Musiliu Oseni, to have issued the warning during the opening section of the 4th NESI Stakeholders Meeting in Abuja.

Oseni stressed that the Commission is prepared to deploy direct financial penalties to enforce compliance.

“You still have your Operational Expenditure (OPEX) at the national wholesale market level. If you refuse to refund customers, that money can be withheld from your OPEX until you have done so,” he declared.

He directed that strict timelines be immediately issued to DisCos to compel adherence to refund obligations.

Also, NERC’s Commissioner for Corporate Services, Nathan Shatti, condemned the attitude of some DisCos toward customer metering and refunds.

He warned them to stop behaving as if they were doing customers a favour.

He cited Abuja and Kano DisCos as particularly underperforming, with only two per cent compliance on refunds.

Shatti criticised the persistent backlog of paid-for but uninstalled MAP meters, dismissing DisCos’ claims of network readiness constraints.

He warned that utilities incur losses on every uninstalled meter or abandoned transformer fault, stressing that it is in their commercial interest to resolve such issues.

Shatti also disclosed that more than 350,000 meters have yet to be migrated to the new STS standard, directing DisCos to urgently clear outdated data.

NERC’s Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye, however, rejected claims by some DisCos that they cannot trace thousands of meters allegedly moved by customers.

He insisted that DisCos must adopt digital enforcement measures similar to financial sector controls to compel customers to update their records.

Akpeneye directed DisCos to publish notices identifying such untraceable meters, block them from vending, and remove them from their systems until the affected customers come forward.