NERC Approves N21 Billion for DisCos to Procure Meters for Customers
The Nigerian Electricity Regulatory Commission (NERC) has announced the approval of N21 billion for 11 electricity Distribution Companies (DisCos) to provide meters for end-use customers. This funding, part of the Presidential Metering Initiative under the Meter Acquisition Fund (MAF), aims to address the persistent metering gap in Nigeria’s electricity supply industry.
In its ORDER NO: NERC/2024/072, NERC detailed the allocation of funds, stating, “The Commission hereby approves the use of a sum of NGN21,000,000,000 (twenty-one billion Naira only) apportioned pro rata to contributions by the DisCos as Tranche A of the MAF scheme.” The order includes a breakdown of the funds available for each DisCo to purchase end-use customer meters.
Importantly, NERC emphasized that these meters will be provided at no cost to customers. “All the meters to be procured and installed under the MAF framework shall be at no cost to the customers of the DisCos,” NERC stated.
Signed by NERC Chairman Engr. Sanusi Garba and Commissioner Legal on January 19, 2024, the order takes effect on June 13, 2024, and may be amended or revoked by subsequent orders from the commission.
NERC’s efforts to tackle metering challenges date back to the introduction of the Meter Asset Provider (MAP) Regulations in 2018 and the subsequent Meter Asset Provider and National Mass Metering Regulations (MAP&NMMR) in 2021. Despite significant interventions, the national metering gap remains substantial, affecting over seven million customers.
The primary constraint has been the DisCos’ inability to secure sufficient financing for meter acquisition and deployment. The MAF scheme, developed and approved by NERC, aims to overcome this by providing a credible revenue stream to support long-term financing for utilities.
The Federal Government’s Presidential Metering Initiative (PMI) seeks to close the metering gap within three years, leveraging smart metering technologies for data analytics. The MAF will contribute to repaying the long-term financing required for this initiative.
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NERC has also deregulated meter prices under the MAP scheme through ORDER NERC/2024/040, ensuring efficient pricing via a transparent and competitive bidding process. A recent competitive bidding process on May 21, 2024, saw 24 MAPs participating across the 12 DisCos, submitting a total of 44 bids for ten different meter specifications.
This strategic move by NERC is expected to significantly reduce the metering gap, enhance billing transparency, and improve overall customer satisfaction in Nigeria’s electricity sector.
