In a significant move aimed at enhancing electricity distribution across Nigeria, the Nigerian Electricity Regulatory Commission (NERC) has approved N21 billion for electricity distribution companies (DisCos) to procure meters for customers.
According to NERC, the funds will be sourced from the Meter Acquisition Fund (MAF) to address the substantial metering gap within the Nigerian Electricity Supply Industry (NESI).
Currently, data from NERC reveals that only 44.67% of the total 13.4 million registered customers have electricity meters as of April 2024.
Engr. Sanusi Garba, Chairman of NERC, emphasized the importance of this initiative, stating, “The deployment of funds under the MAF scheme shall accelerate the deployment of meters and close the current metering gap, thereby reducing commercial and collection losses to DisCos, enhancing quality of service, and improving customer satisfaction.”
The Commission attributed the low metering rate to DisCos’ challenges in securing financing from lenders.
Dale Akpeneye, Commissioner for Legal at NERC, underscored the role of the MAF in ensuring equitable access to meters for electricity consumers nationwide.
“This funding allocation is a critical component of the Multi-Year Tariff Order, designed to streamline tariff structures and enhance service delivery,” Akpeneye added.
The approval marks a proactive initiative aimed at resolving longstanding metering challenges in Nigeria’s electricity sector, with the goal of enhancing operational efficiency and improving customer service standards across Distribution Companies (DisCos).
“While the NESI is expected to leverage on the revenue stream under the MAF Framework to raise substantial capital funding for metering, there is an imperative to accelerate closure of the metering gap For all customers currently classified under tariff Band A for revenue protection and Facilitating demand side management for the affected customers.
“The funds accrued as at the April 2024 market settlement cycle and available For procurement of meters under the first tranche of the MAF scheme is in the sum of N21,864,851,725.00. The Commission hereby approves the use of a sum of N21 billion apportioned pro rata to contribution by the DisCos as Tranche A of the MAF scheme”.
NERC said that “DisCos shall utilise the first tranche (Tranche A) of disbursement from the MAF scheme based on contributions made by DisCos as at the April 2024 market settlement and attached to this Order as Schedule I, to procure and install meters for unmetered Band ‘A’ customers within their franchise areas.
“DisCos shall, within 14 days from the effective date of this Order, conduct a transparent and competitive procurement process, for meter price determination, selection and engagement of MAPs/LMMAs For the metering OF end-use customer meters under the MAF scheme”.
A breakdown of how the money would be allocated among the DisCos showed that Ikeja Electric with N4.36 billion would receive the highest amount, followed by Abuja DisCo with N2.99 billion.
Others are Eko DisCo N2.92 billion, Ibadan DisCo N2.51 billion, Enugu DisCo N1.72 billion, Benin DisCo N1.57 billion, Kano DisCo N1.56 billion, Port Harcourt DisCo N1.36 billion, Kaduna Electric N1.22 billion, Jos DisCo N521.90 million and Yola DisCo N243.35 million.