The Nigerian Electricity Regulatory Commission (NERC) has announced the approval of N21 billion for the procurement of electricity meters for Band ‘A’ customers.
The initiative, which falls under the first tranche of the Presidential Metering Initiative (PMI) through the Meter Acquisition Fund (MAP), aims to provide and install meters for end-users at no cost.
In an order signed by NERC Chairman Sanusi Garba and Commissioner Dafe Akpeneye, NERC explained that the fund is part of efforts to address the national metering gap, which currently exceeds seven million customers.
”Despite various regulations offering multiple metering options, these interventions have not successfully closed this gap,” the order stated.
A major constraint identified by NERC is the inability of distribution companies (Discos) to secure financing for the acquisition and deployment of end-use meters and other capital investments.
”The MAF scheme was developed to address this issue by creating a reliable revenue stream from market funds, enhancing the Discos’ creditworthiness,” NERC noted.
NERC stated that the PMI aims to close the metering gap within three years, utilizing smart metering technologies for data analytics.
”The deployment of funds under the MAF scheme is expected to accelerate the installation of meters, reduce commercial and collection losses for Discos, improve service quality, and enhance customer satisfaction,” the commission said.
The NERC further highlighted the need to quickly close the metering gap for customers in tariff Band ‘A’ to protect revenue and facilitate demand-side management.
The commission stated, ”Out of the available N21.86 billion under the MAF scheme as of April 2024, we have allocated N21 billion for the procurement of metering devices.
”The funds are to be distributed among Discos based on their contributions to the scheme.
”Ikeja Disco will receive the largest share of N4.35 billion, followed by Abuja Disco with N2.99 billion.
”Other allocations include N2.92 billion for Eko Disco, N2.51 billion for Ibadan Disco, N1.72 billion for Enugu Disco, N1.58 billion for Kano Disco, and N1.57 billion for Benin Disco.
”Port Harcourt Disco will receive N1.36 billion, Kaduna Disco N1.22 billion, Jos Disco N521 million, and Yola Disco N243.3 million.”
NERC mandated that Discos use the funds to procure and install meters for unmetered Band ‘A’ customers within their areas.
The commission added: ”Discos are required to conduct a transparent and competitive procurement process for selecting meter providers and determining meter prices within 14 days of the order’s effective date.
”They must then submit a detailed report of the procurement process to NERC for approval within 20 days.
”The installation of the meters must be completed within 60 days from the date of process approval by the commission. All contracts for meter supply and installation must also be filed with NERC.
”This initiative is part of ongoing efforts to bridge the metering gap, reduce estimated billing, and improve the efficiency and reliability of electricity supply in Nigeria.”
