The Federal Government has kicked off the phased distribution of over one million prepaid meters to Band A electricity customers, marking a significant move to address metering gaps and enhance the accuracy of billing systems within the power sector.
Sources familiar with the ongoing process reveal that several electricity distribution companies (DisCos) have already begun receiving meters for distribution to their Band A customers.
This initiative is part of the broader effort to address the longstanding issue of unmetered electricity users, with the government having previously earmarked N20 billion for this purpose.
Band A customers, defined as those receiving a minimum of 20 hours of power supply daily, are now set to benefit from this scheme.
These customers currently pay N209.50 per kilowatt-hour for electricity after the removal of government subsidies.
The Minister of Power, Adebayo Adelabu, had earlier disclosed in June that this metering program, funded by the N20bn allocation, is aimed at ensuring that these customers transition from estimated billing to accurate, meter-based charges.
“By the end of September, meters for unmetered Band A customers will be procured, and we have secured funding to accelerate the installation process,” Adelabu said during the announcement.
He emphasized that approximately 3.5 million meters would be supplied by the end of the year, with the majority sourced from international vendors. However, a portion would also be procured from local manufacturers to foster domestic capacity in meter production.
The Nigerian Electricity Regulatory Commission (NERC) further bolstered the initiative by approving N21bn under the Meter Acquisition Fund (MAF).
This approval aims to close the current metering gap, reduce commercial losses, and improve customer satisfaction by ensuring more reliable and accurate billing.
The Yola Electricity Distribution Company (YEDC) has already started the distribution of 1,880 meters to its Band A customers as part of the Meter Acquisition Fund initiative.
The distribution, which includes both single-phase and three-phase meters, will be completed by November 30, 2024, and will incur no cost to customers.
This deployment follows NERC’s green light for the Meter Asset Funds process.
Similarly, the Ibadan Electricity Distribution Company (IBEDC) has confirmed that its metering initiative is underway, beginning with Band A customers in Ogun State before extending to other states in its franchise area.
However, Ikeja Electric in Lagos has yet to receive the MAF meters, with officials stating that they are still awaiting delivery.
This effort, alongside the broader goal of addressing Nigeria’s estimated seven million metering gap, is part of the government’s ongoing strategy to reform the energy sector and improve the overall quality of electricity service in the country.
The phased roll-out of these meters is expected to have a significant impact on reducing billing discrepancies, enhancing the revenue base for the power sector, and ensuring greater transparency in electricity distribution.