NERC orders DisCos to refund N20bn outstanding meter costs to customers
CHIGOZIE AMADI
The Nigerian Electricity Regulatory Commission (NERC) has ordered electricity distribution companies (DisCos) to refund a total of ₦20.33bn in outstanding meter costs.
The directive, contained in Order No: NERC/2026/025, which amends a previous 2023 order, was signed on February 27, 2026, by NERC Chairman Musiliu Oseni and Commissioner for Legal, Licensing & Compliance, Dafe Akpeneye.
According to the new order, DisCos are required to reimburse affected customers fully over 12 months, starting March 1, 2026. The refunds pertain to meters purchased under the Meter Asset Provider (MAP) framework, in which customers initially pay for meters and are reimbursed through energy credits.
However, NERC noted that previous reimbursements had been slow, leaving an outstanding ₦20.33 billion as of December 31, 2025. The order aims to eliminate delays, improve customer notifications, and restore confidence in the sector.
The commission instructed that all reimbursements be fully automated on customer accounts:
For prepaid customers, DisCos must generate monthly tokens equivalent to the reimbursement amount, no later than the fourth day of each month. For postpaid customers, the monthly reimbursement must appear as a distinct credit line on bills.
NERC also clarified that meter reimbursement credits cannot be offset against legacy customer debt.
According to the commission, as of December 31, 2025, DisCos had failed to reimburse customers for meters procured under the MAP framework, leaving an outstanding ₦20.33bn.
The new order is intended to prevent repeated delays in reimbursements, optimise customer notification, and strengthen sector credibility and confidence.
“In February 2026, the commission reviewed the level of compliance of DisCos with the expected reimbursement to customers who have paid for meters under the MAP framework.
NERC further stated that all reimbursements to customers for meters procured under the MAP framework would be fully automated on customer accounts, saying, “DisCos shall ensure that the total cost of a MAP meter is recognised as credit on the customer’s account upon activation of the meter and disbursed automatically as monthly credits over the approved amortisation period.”
DisCos were also instructed that meter reimbursement credits cannot be offset against customer legacy debt.
The new Order added: “DisCos shall not offset meter reimbursement credits against customer legacy debts; the items must be treated separately.”
For prepaid customers, DisCos must automatically generate monthly tokens representing the reimbursement, while for postpaid customers, the reimbursement must appear as a distinct credit on their bills.
The electricity sector regulator added: “For customers with prepaid meters, no later than the 4th day of every month, the DisCo’s billing system will automatically generate a token with an energy value equivalent to the monthly reimbursement which the customer is due to receive over the 120-month amortisation period based on the prevailing tariff for the customer.
“For post-paid customers, the monthly reimbursement of the cost of a MAP meter shall appear as a distinct credit line item which is expected to be subtracted from the customer’s total payable for the month.
“All DisCos shall file monthly reports with the Commission detailing the total monetary value of the reimbursement to customers through energy credit, in accordance with the template approved by the Commission.
“All DisCos shall establish a dedicated email address for the receipt of complaints from customers who have not received MAP meter cost reimbursements. Details of such complaints, including the status of their resolution, shall form part of the monthly compliance reports submitted to the commission.
“To recover the sum of N20.33bn that was not reimbursed to customers as at 31 December 2025, DisCos shall accelerate the rate of recovery for the affected customers over a 12-month period commencing from 1 March 2026.”
