Electricity distribution companies (DisCos) have raised concerns over the Federal Government’s directive that prepaid meters must be provided to customers at no cost, describing the policy as unrealistic and politically driven.
The Minister of Power, Adebayo Adelabu, on Thursday warned DisCos and installers against collecting any fees for meters, saying those found extorting customers would be prosecuted. Speaking during an inspection of newly imported smart meters at APM Terminals, Apapa, Lagos, he said the meters, procured under the World Bank–funded Distribution Sector Recovery Programme, must be installed free of charge for all categories of customers.
Adelabu said any demand for payment by DisCo officials or installers would be treated as an offence, stressing that free installation would improve billing and revenue collection across the sector.
However, DisCo operators, who spoke anonymously, said the “free” meters would ultimately be paid for by DisCos over a long period, warning that the policy ignores cost recovery and stakeholder input.
They argued that someone must bear the cost of procurement and installation, cautioning that failure to address this could deepen sector debt and undermine sustainability.
Operators also warned that the directive could jeopardise the Meter Asset Providers (MAP) scheme, under which customers can purchase meters directly and recover costs through energy credits.
They urged the government and regulator to clarify funding arrangements and align policies with cost recovery principles to avoid confusion, disruption to meter supply, and further strain on power sector finances.
Keywords: electricity meters, DisCos, power sector, Adebayo Adelabu, MAP scheme
