The Nigerian Electricity Regulatory Commission (NERC) has issued a stern warning to electricity distribution companies (DisCos) about meeting the July 31 deadline for metre upgrades.

In a statement released on Tuesday during the second Nigerian Electricity Supply Industry (NESI) stakeholders meeting for 2024, NERC emphasised the necessity for DisCos to upgrade existing metres to a new specification to ensure they continue to accept metre tokens.

NERC highlighted that DisCos failing to migrate the token identifiers of standard transfer specification (STS) metres from key revision 1 to key revision 2 before the deadline would face penalties.

The token identifier is a secret code embedded in each energy token used on prepaid electricity meters, while STS is the global standard for the transfer of electricity and other utility prepayment tokens.

Key topics discussed at the NESI meeting included the STS-2 migration by DisCos, the establishment of the Independent System Operator (ISO) within the NESI, MAP Metre Refunds, and various metering challenges.

NERC noted significant presentations from DisCos on the impacts, challenges, opportunities, and action plans for transitioning to a multi-tier market, highlighting the recent signing of the Electricity Act 2023.

“Of note were the DisCo presentations on the impact, challenges, opportunities and action plans for transitioning to a multi-tier market. ​

“The recent signing of the Electricity Act 2023 has unlocked significant opportunities for the private sector and state governments nationwide to participate more actively in the NESI,” the commission said.

This act has opened significant opportunities for private sector and state government participation in the NESI, with some states already establishing their own State Electricity Regulatory Commissions (SERCs).

A critical part of the discussion focused on the progress report regarding the STS migration of electricity metres and the impending deadline.

NERC reiterated that sanctions would be imposed on any DisCos that fail to complete the STS metre migration by July 31.

Additionally, NERC provided an update on the Zungeru Hydropower Plant, stating that the plant’s commencement of operations has ensured that all accumulated and overspilling water is now being utilised effectively for the benefit of the country.