The Nigerian Electricity Regulatory Commission (NERC) has announced the approval of N21 billion for 11 electricity Distribution Companies (DisCos) to provide meters for end-use customers.
This was contained in its ORDER NO: NERC/2024/072 on The Operationalization of “Tranche A” of the Presidential Metering Initiative Under the Framework of Meter Acquisition Fund.
NERC said: “The Commission hereby approves the use of a sum of NGN21,000,000,000 (twenty one billion Naira only) 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 emphatically said that the DisCos shall buy and install the meters for customers under the MAF free of charge.
“All the meters to be procured and installed under the MAF framework shall be at no cost to the customers of the DisCos,” said NERC.
The order which NERC chairman, Engr. Sanusi Garba and Commissioner Legal signed on 19th January 2024, “shall become effective on 13th June 2024 and may be amended or revoked by subsequent orders issued by the commission.
NERC had introduced the Meter Asset Provider {“MAP”) Regulations 2018 and subsequently, the Meter Asset Provider and National Mass Metering
[“MAP&NMMR”) Regulations in 2021 to address metering challenges in the Nigerian Electricity Supply Industry (“NESI“).
The Regulations provided several options for metering end-use customers but the interventions, though significant, have not resulted in the closure of the national metering gap which currently stands in excess of seven million customers.
The inability of distribution companies (“DisCos”} to raise financing in the form of debt or additional equity was identified as the major constraint in the acquisition and deployment of end-use meters and other capital investments. The Meter Acquisition Fund
{“MAF”) scheme was therefore developed and approved by the Commission, primarily to address the challenge of DisCo creditworthiness inhibiting the deployment of end-use meter in NES| by creating a credible revenue stream from the market funds on the back of which long term financing may be secured by the utilities.
NERC said the management of Fund Manager (“FM”) is based on terms and conditions negotiated by the DisCos and approved by the Commission.
According to the commission, the Federal Government has approved the Presidential Metering Initiative {“PMI”) with the overarching objective of closing the metering gap in the NES! within three years leveraging on smart metering technologies for data analytics. The MAF shall form one of the revenue streams for the repayment of the long tenor financing for metering.
Continuing, the order revealed that “The Commission approved the deregulation of meter prices under the MAP scheme vide Order NERC/2024/040 to ensure on efficient pricing of meters while responding more quickly to changes in macroeconomic parameters.
“The Order provides that all prices of meters under the MAP scheme shall be determined through a transparent and competitive bidding process by eligible MAPs.
“A competitive bidding process was held on 21 May 2024 based on the provisions of Order NERC/2024/040 where a total of 24 (twenty-four)] MAPs participated across the 12 (twelve) DisCos. A total of 44 bids were submitted for 10 (ten) meter specifications.”
Source: The Nation
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