The Nigerian Electricity Regulatory Commission (NERC) has granted ₦21 billion in funding to electricity distribution companies (DisCos) to purchase meters for their customers.
Recall that the urgency of the situation is being addressed through this funding, sourced from the Meter Acquisition Fund (MAF).
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This will enable the discos to swiftly tackle the significant shortfall in meter installations across the Nigerian Electricity Supply Industry (NESI), thereby improving the overall efficiency of the sector.
According to data from NERC, as of the end of April 2024, only 44.67 per cent of the total 13.4 million customers registered were equipped with electricity meters.
The MAF is part of the Multi-Year Year Tariff Order, which determines customers’ fees.
In a directive from its Chairman, Engr Sanusi Garba, and Commissioner for Legal, Dale Akpeneye, the Commission pointed out that the low rate of meter installations was due to the DisCos’ struggles in securing loans from financial institutions.
NERC stated that “The deployment of funds under the MAF scheme shall accelerate the deployment of meters and a closure of the current metering gap thereby reducing commercial & collection losses to DisCos, enhancing quality of service and improvement of customer satisfaction.
“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 ordered 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.”
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A breakdown of how the money would be allocated among the DisCos showed that Ikeja Electric, with ₦4.36 billion would receive the highest amount, followed by Abuja DisCo with ₦2.99 billion.
Others are Eko DisCo N2.92 billion, Ibadan DisCo N2.51 billion, Enugu DisCo ₦1.72 billion, Benin DisCo ₦1.57 billion, Kano DisCo ₦1.56 billion, Port Harcourt DisCo ₦1.36 billion, Kaduna Electric ₦1.22 billion, Jos DisCo ₦521.90 million and Yola DisCo ₦243.35 million.
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