The Nigerian Electricity Regulatory Commission (NERC) has approved N21 billion for electricity distribution companies (DisCos) to procure meters.
NERC made this known in a document dated June 20.
In the document titled ‘Order on the Operationalisation of “Tranche A” of the Meter Acquisition Fund,’ NERC said the N21 billion will come from the meter acquisition fund (MAF).
The commission said the fund will enable the electricity companies to address the huge metering gap in the Nigerian Electricity Supply Industry, NESI.
“The deployment of funds under the MAF scheme shall accelerate the deployment of meters and a closure of the current metering gap thereby reducing commercial & collection losses to DisCos, enhancing quality of service and improving customer satisfaction,” NERC said.
“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 also said DisCos should 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.
According to the schedule of the MAF first tranche disbursement allocation attached to the order, 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 are 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).
Also, Kaduna Electricity Distribution Company received N1.22 billion; Jos Electricity Distribution Company N521 million and Yola Electricity Distribution Company N243 million.
On June 7, Adebayo Adelabu, minister of power, said the federal government will disburse a total of N20 billion to DisCos for the procurement of meters for unmetered Band A customers.
Band A customers are electricity consumers who receive a minimum of 20 hours of electricity per day and have started getting charged a premium tariff of N208 per kilowatt-hour (kWh) since April.
