Nigerian Electricity Regulatory Commission (NERC) has approved N21 billion for electricity distribution companies (DisCos) to procure meters.
Gatekeepers News reports that NERC revealed this in a document titled “Order on the Operationalisation of “Tranche A” of the Meter Acquisition Fund” dated June 20.
The commission said the N21 billion will be gotten from Meter Acquisition Fund (MAF).
According to NERc, the fund will enable electricity companies to address the huge metering gap in the Nigerian Electricity Supply Industry (NESI).
Data drawn by NERC showed that as of April end, only 44.67 percent of the total 13.4 million registered customers have electricity meters.
It said,” The deployment of funds under the MAF scheme shall accelerate the deployment of meters and closure of the current metering gap thereby reducing commercial & collection losses to DisCos, enhancing quality of service and improving 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 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 further instructs DisCos to, within 14 days from the effective date of the order, conduct a transparent and competitive procurement process for meter price determination, selection, and engagement of meter asset providers (MAPs) for the metering of end-use customer meters under the MAF scheme.
The schedule of the MAF first tranche disbursement allocation attached to the order showed that Ikeja Electricity Distribution Company (IKEDC) has the highest allocation of N4.35 billion followed by Abuja Electricity Distribution Company (AEDC) with N2.99 billion and Eko Electricity Distribution Company with N2.92 billion.
Others include Ibadan Electricity Distribution Company (N2.51 billion); Enugu Electricity Distribution Company (N1.72 billion); Benin Electricity Distribution Company (N1.57 billion); Kano Electricity Distribution Company (N1.56 billion); and Port Harcourt Electricity Distribution Company (N1.36 billion).
Kaduna Electricity Distribution Company received N1.22 billion; Jos Electricity Distribution Company N521 million and Yola Electricity Distribution Company N243 million are also included.
Before this, minister of power, Adebayo Adelabu had on June 7 said the federal government will disburse a total of N20 billion to DisCos for the procurement of meters for unmetered Band A customers.
Note that Band A customers are electricity consumers who receive a minimum of 20 hours of electricity per day. They are now being charged a premium tariff of N208 per kilowatt-hour (kWh) since April.
