The Nigerian Electricity Regulatory Commission (NERC) has approved N21 billion for the country’s eleven electricity Distribution Companies (DisCos) to provide meters to end-use customers at no cost.
This announcement was made on Friday, June 21, and is detailed in NERC’s ORDER NO: NERC/2024/072, which outlines the implementation of the first tranche of the Presidential Metering Initiative under the Meter Acquisition Fund (MAF).
NERC’s order mandates that DisCos must purchase and install the meters for their customers without charging them.
“The funds accrued as of 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 NGN21,864,851,725.00. The Commission hereby approves the use of a sum of NGN21,000,000,000 apportioned pro rata to contribution by the DisCos as Tranche A of the MAF scheme,” NERC stated.
A breakdown of the funds allocated to each DisCo for purchasing the meters is included in the order’s Schedule 1.
NERC emphasized, “All the meters to be procured and installed under the MAF framework shall be at no cost to the customers of the DisCos.”
Accelerating Meter Deployment
The deployment of these funds aims to speed up the installation of meters and close the existing metering gap. This will help reduce commercial and collection losses for the DisCos, enhance service quality, and improve customer satisfaction.
NERC explained that DisCos will use the first tranche, “Tranche A,” of disbursement from the MAF scheme, based on their contributions as of April 2024, to procure and install meters for unmetered Band ‘A’ customers in their areas.
NERC also highlighted the need for a t”ransparent and competitive procurement process for determining meter prices and selecting Meter Asset Providers (MAPs) or Licensed Meter Manufacturers (LMMAs). This process aims to ensure fair and efficient metering of end-use customers under the MAF scheme.”
Background and Government Support
Earlier, Minister of Power Adebayo Adelabu announced that the “federal government would release N20 billion to DisCos for procuring meters for unmetered Band A customers within the next three months. Band A customers are those who receive a minimum of 20 hours of electricity per day and are charged a premium tariff of N208 per kilowatt-hour (kWh).”
Adelabu assured that these customers would receive their meters by the end of September.
He said, “Before I left the office yesterday, I met with the chairman of NERC, Alhaji Garba Sanusi, and we’ve agreed that we have an accrued N20 billion for metering. I said to him, let us release this N20 billion for the DisCos to procure meters for the unmetered Band A customers before the end of September. That is going to happen. I can assure you that.”
Closing the Metering Gap
“The initiative to provide free meters is a significant step toward addressing the long-standing issue of metering in Nigeria’s electricity sector. By ensuring that Band A customers, who pay the highest tariffs, receive meters, the government and NERC aim to improve transparency, reduce estimated billing disputes, and enhance overall customer experience.
“This move also aligns with broader efforts to modernize Nigeria’s electricity infrastructure, ensuring that more consumers are accurately billed for their consumption and helping to stabilize the sector financially.”