Metering gap: A chronicle of DisCos’ consistent performance decline
– By majorwavesen

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Lagos — Since the privatization of the power sector by the Electric Power Sector Reform, EPSR Act of 2005, there has been a constant decline in the metering of existing customers by the electricity distribution companies even though new customers have been steadily added to their network, contributing to a significant metering gas, SweetcrudeReports has found.

As of May 2012, data obtained from the Nigerian Electricity Regulatory Commission, NERC, had revealed that a total number of 5, 172, 979 customers were registered in all distribution companies as electricity customers.

Out of this number, 2, 893 or 55.94 percent were metered, while 2, 355, 045 or 45.53 percent were unmetered.

The DisCos then signed performance agreements with the Bureau of Public Enterprises, BPE in 2013, which was to see the injection of 1, 640, 000 meters annually over the next five years.

The agreement was supported with provisions for CAPEX in MYTO 2015 Order and the Credit Advance Payment for Metering Initiative, CAPMI which was a loan given by customers to DisCos in exchange for metering.

However, the DisCos failed to abide by the Performance Agreement terms and also failed to effectively meter customers under the CAPMI arrangement.

As at the CAPMI era, many customers had come forward to lament how they had paid officials of DisCos for meters, however, were not supplied any. The DisCos had, in turn, said probably, those purported officials said to have been paid to, were not their workers.

This means that by December 2018, according to NERC’s data, the number of customers had risen to 8, 342, 880, with 3, 558, 692 metered and billed on estimates as at December 2018.

As at December 2018, Abuja DisCo had metered 48 percent of its customers, Benin 62 percent, Eko 48 percent, Enugu 35 percent, Ibadan 41 percent, Ikeja 47 percent, Jos 35 percent, Kaduna 28 percent, Kano 25 percent, Port Harcourt 61 percent, and Yola 21 percent.

The DisCos at various times have lamented that the tariff granted by the MYTO 2015, Order remains insufficient for investments in electricity infrastructure comprising of metering, network clean up, customer enumeration and improvement to network assets, resulting in persistent estimated billing.

However, NERC said its position on estimated billing is that, where it occurs, there must be a scientific method of estimating usage of the customer.

To this regard, NERC issued a scientific methodology for estimated billing method, however, the method has not been “effectively implemented by the DisCos” because provisions of the methodology required that all distribution transformers are metered so as to have a scientific means of deducting the consumption of customers who are metered from the distribution transformer and then share appropriately, according to NERC.

“The DisCos failed to do distribution transformer metering which the methodology was heavily dependent on for fairness hence, the source of inaccuracy in estimated billing”, NERC said in its January 2019 newsletter.

The commission said it condemns estimated billing in all its totality, adding that the act is an “element of guesswork and arbitrariness is introduced”.

To address the shortfall, NERC in 2018, came up with the meter Asset Provider regulation, MAP, an opportunity for investors to put their monies in metering, and act as partners with the DisCos to provide meters.

As at this month, a total of 121 firms have been granted a “No-Objections” license by NERC, to participate in the DisCos procurement process and were free to quote their cost of providing meter services.

However, the commission said it is currently reviewing the procurement process in the DisCos, having appointed tender auditors to audit the DisCos and ensure that the MAPs appointed are the outcome of a transparent cost of an effective process that will guarantee Nigerians best of quality meters.

DisCos refused to allow NERC registered MAP companies to operate

Despite NERC’s efforts at bridging the metering gap and end estimated billing, findings showed that the electricity distribution companies, DisCos, have refused to allow some of the MAP companies registered by the NERC, to operate, except those favoured by them.

In a petition to the Minister Power, Works and Housing, Babatunde Fashola, dated January 25th, written by the Managing Director and Chief Executive Officer, Akomed Global Link Ltd, Dr. Akojenu Amos, the DisCos were accused of preferring a set of MAP companies over the others, thereby making it impossible for the others to operate.

According to the petition, DisCos have refused to work with the majority of the MAPs and have not given them orders or jobs to date.

“Obviously, the DisCos are working hand in glove with a CARTEL. These were their regular contractor and will not allow any other contractors to come in,” Dr. Amos told SweetcrudeReports in an interview.

“Without mincing words, this is a ploy to frustrate Federal Government’s efforts to provide prepaid electricity meters to millions of consumers and thereby, stopping corruption in meter distribution and eventually, stop the estimated bill and the fraud goes with it.”

“We MAP members have prepaid meters and our teaming customers are eager to buy meters from us. But the Discos WILL NOT code and activate the meters. This is contrary to the government’s directives,” the petition read.

Efforts to reach the Association of Nigerian Electricity Distributors, ANED’s spokesperson, Mr. Sunday Oduntan on the accusation by MAPs proved abortive as his phone number has been consistently switched off. Text messages were also unable to get through to him.

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