News

See Reasons NERC will sanction DisCos

Published by Tope Fakinlede on June 27th, 2024.

See Reasons NERC will sanction DisCos

NERC Warns DisCos of Sanctions Over Meter Migration Deadline

By Dare Olawin

NERC

The Nigerian Electricity Regulatory Commission (NERC) has issued a warning to distribution companies (DisCos) regarding the completion of the Token Identifier migration for Standard Transfer Specification (STS) meters. DisCos must upgrade their customers’ meters from Key Revision 1 to Key Revision 2 by July 31, 2024, or face sanctions.

This warning was communicated during the second Nigerian Electricity Supply Industry stakeholders meeting of 2024, held at NERC’s headquarters. The STS system ensures secure communication between points-of-sale and meters, preventing the fraudulent generation of tokens.

The stakeholders discussed the progress of the STS meter migration and emphasized the approaching deadline. NERC warned that any DisCo failing to complete the migration by the July 31 deadline would be sanctioned.

According to The PUNCH, NERC has cautioned that customers must upgrade their meters, as those who fail to do so will be unable to recharge them after the deadline. Additionally, customers with meters that cannot be migrated to STS will need replacements to remain in the system.

The STS is described by NERC as a widely used secure message system in electricity metering and payment systems. It prevents various types of fraud, including the reuse of tokens, token generation from stolen or unauthorized vending stations, and tampering with legitimate tokens.

In July, NERC mandated that all distribution licensees must ensure the migration of their STS meters from TID Key Revision 1 to TID Key Revision 2 by July 31, 2024. Additionally, vending systems and secure modules must be upgraded to STS600-4-2 compliance by this date. Licensees are prohibited from installing non-compliant meters from July 6, 2023, onward. Non-compliant meters must be retrofitted and migrated by the deadline.

During the recent stakeholders meeting, updates were provided on various topics, including the establishment of the Independent System Operator, the MAP Meter Refunds, and metering challenges. Presentations by DisCos covered the impact, challenges, opportunities, and action plans for transitioning to a multi-tier market.

The recent signing of the Electricity Act 2023 has created significant opportunities for private sector and state government participation in the Nigerian Electricity Supply Industry (NESI). Some states have already begun establishing their own State Electricity Regulatory Commissions.

NERC also provided an update on the Zungeru Hydro Power Plant, noting that the water previously accumulating and over-spilling is now being utilized for the country’s benefit.