NERC directed DisCos to refund N20.33 billion to customers within 12 months

The Nigerian Electricity Regulatory Commission (NERC) has ordered electricity distribution companies (DisCos) to refund N20.33 billion to customers who paid for meters under the Meter Asset Provider (MAP) scheme but are yet to be fully reimbursed.

In the new directive, the regulator instructed that outstanding amounts must be recovered and repaid in full to affected customers over a 12-month period starting March 1, 2026.

Under the MAP framework, customers are required to pay for electricity meters up front, with the understanding that DisCos will recoup the costs over time through energy credits. However, NERC observed that repayment was slow, prompting regulatory intervention.

The order, titled Order Number: NERC/2026/025, amends a previous order in 2023 on meter reimbursement. The agreement was signed on February 27, 2026 by NERC Chairman, Musiliu Oseni, and Legal, Licensing & Compliance Commissioner, Dafe Akpeneye.

According to the commission, as of December 31, 2025, the distribution company had failed to repay N20.33 billion owed to customers under the MAP arrangement.

“In February 2026, the commission reviewed DisCos’ level of compliance with expected reimbursements to customers who have paid for meters under the MAP framework.

“The review highlights that DisCos have an outstanding amount of N20.33 billion to reimburse customers for meters purchased under the MAP framework as of December 31, 2025,” the order said.

NERC explained that the new directive is designed to reduce persistent delays, increase transparency in customer notifications, and increase public confidence in the electricity sector.

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The main feature of this order is refund automation. The Commission mandates that meter replacement credits must automatically be credited to the customer’s account once the meter is activated.

“DisCos will ensure that the total cost of the MAP meter is recognized as a credit in the customer’s account upon meter activation and disbursed automatically as a monthly credit over the agreed amortization period,” the commission said.

Regulators also prohibited DisCos from using reimbursement credits to offset customers’ old debts. “DisCos will not offset meter replacement credits against customers’ legacy debts; these items must be treated separately,” the order said.

For prepaid customers, distribution companies are required to create a monthly energy token that reflects the reimbursement, while postpaid customers should see the refund as a separate credit entry on their bill.

NERC said, “For customers with prepaid meters, no later than the 4th day of each month, the DisCo billing system will automatically generate a token with an energy value equal to the monthly reimbursement the customer is due over the 120-month amortization period based on the customer’s applicable rate.

“For postpaid customers, monthly MAP meter reimbursement will appear as a separate credit item which is estimated to be deducted from the customer’s total debt for that month.”

To address the N20.33 billion backlog, the commission directed DisCos to accelerate repayment within one year. Under the accelerated recovery plan, prepaid customers will receive two reimbursement tokens each month, while postpaid customers will see two credit line items on their bills.

“In order to recover the outstanding amount of N20.33 billion to customers by December 31, 2025, DisCos will accelerate the rate of recovery for affected customers over a 12-month period commencing March 1, 2026,” the order said.

Additionally, the commission mandated strict oversight measures, including monthly compliance reports and the creation of a dedicated complaint line for customers who have not received refunds.

“All DisCos must file monthly reports with the Commission detailing the total monetary value of reimbursements to customers through energy credits, in accordance with a template approved by the Commission.

“All DisCos will create a dedicated email address to receive complaints from customers who have not received reimbursement for MAP meter charges. Details of such complaints, including their resolution status, will form part of the monthly compliance report submitted to the commission,” it added.

With this directive coming into force from March 2026, customers who finance their electricity meters under the MAP scheme are expected to start receiving accelerated credit, while the regulator increases compliance monitoring across the electricity distribution sector.