NERC Has Approved Sum of N21bn To meter end-User Customers Free

The Nigerian Electricity Regulatory Commission (NERC) announced on Friday, June 21, the approval of N21 billion for the eleven electricity Distribution Companies (DisCos) to provide meters for end-use customers at zero cost. This move is part of the Presidential Metering Initiative under the Meter Acquisition Fund (MAF), aiming to bridge the metering gap and enhance customer satisfaction.

In ORDER NO: NERC/2024/072, titled “The Operationalization of ‘Tranche A’ of the Presidential Metering Initiative Under the Framework of Meter Acquisition Fund,” NERC detailed the operationalization of this initiative. The order states that DisCos will purchase and install meters for customers free of charge, utilizing the funds accrued up to the April 2024 market settlement cycle. The total amount available for this first tranche, known as “Tranche A,” is NGN21,864,851,725.00, with NGN21,000,000,000 approved for immediate use.

“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. Attached to this Order as Schedule 1 is a breakdown of the funds available for each DisCo for the purchase of end-use customer meters,” NERC stated.

NERC emphasized that all meters procured and installed under this framework will be at no cost to the customers. This initiative is expected to accelerate meter deployment, close the current metering gap, reduce commercial and collection losses for DisCos, and enhance service quality and customer satisfaction.

The first tranche of the MAF Scheme, based on contributions made by DisCos as of the April 2024 market settlement, will focus on procuring and installing meters for unmetered Band ‘A’ customers within their franchise areas. Band A customers are defined as those receiving a minimum of 20 hours of electricity per day and are charged a premium tariff of N208 per kilowatt-hour (kWh).

NERC also noted the importance of a transparent and competitive procurement process for meter price determination and the selection and engagement of Meter Asset Providers (MAPs) and Licensed Meter Manufacturers and Assemblers (LMMAs). This process aims to ensure the efficient deployment of meters and the protection of revenue streams within the Nigerian Electricity Supply Industry (NESI).

Adebayo Adelabu, the Minister of Power, previously stated that the federal government would release N20 billion to DisCos for procuring meters for unmetered Band A customers within the next three months. This funding will further help close the metering gap for these customers.

“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,” Adelabu said.