On Friday, the Nigerian Electricity Regulatory Commission (NERC) approved N21 billion for electricity distribution companies (DisCos) to procure meters for customers.
This funding, sourced from the Meter Acquisition Fund (MAF), aims to address the significant metering gap in the Nigerian Electricity Supply Industry (NESI).
According to NERC data, as of the end of April 2024, only 44.67 percent of the 13.4 million registered customers have electricity meters.
The MAF is part of the Multi-Year Tariff Order, which outlines the tariff payable by customers. In an order issued by its Chairman, Engr Sanusi Garba, and Commissioner for Legal, Dale Akpeneye, NERC attributed the low metering rate to the DisCos’ inability to secure financing from lenders.
NERC stated, “The deployment of funds under the MAF scheme shall accelerate the deployment of meters and close the current metering gap, thereby reducing commercial and collection losses for DisCos, enhancing service quality, 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 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.
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“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”.
The allocation of funds among the DisCos is as follows: Ikeja Electric will receive the highest amount at N4.36 billion, followed by Abuja DisCo with N2.99 billion.
The other allocations are as follows: Eko DisCo will get N2.92 billion, Ibadan DisCo N2.51 billion, Enugu DisCo N1.72 billion, Benin DisCo N1.57 billion, Kano DisCo N1.56 billion, Port Harcourt DisCo N1.36 billion, Kaduna Electric N1.22 billion, Jos DisCo N521.90 million, and Yola DisCo N243.35 million.
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