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DisCos Receive ₦21 Billion From NERC To Tackle Metering Gap
NERC has allocated ₦21 billion to DisCos for meter purchases, aiming to close the metering gap and improve efficiency in the Nigerian Electricity Supply Industry.
EKO HOT BLOG reports that the Nigerian Electricity Regulatory Commission (NERC) has allocated ₦21 billion to electricity distribution companies (DisCos) for the purchase of meters for their customers.
This funding, sourced from the Meter Acquisition Fund (MAF), aims to urgently address the significant shortfall in meter installations across the Nigerian Electricity Supply Industry (NESI), thereby improving overall sector efficiency.
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As of the end of April 2024, only 44.67 percent of the 13.4 million registered customers had electricity meters, according to NERC data. The MAF is part of the Multi-Year Tariff Order, which determines customer fees.
In a directive from its Chairman, Engr. Sanusi Garba, and Commissioner for Legal, Dale Akpeneye, NERC highlighted that the low rate of meter installations was due to DisCos’ difficulties in securing loans from financial institutions.
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 quality of service, and improving customer satisfaction.”
The NESI is expected to leverage the revenue stream under the MAF Framework to raise substantial capital funding for metering. There is an imperative to accelerate the 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.
₦21 Billion From NERC
“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.”
A breakdown of how the money would be allocated among the DisCos showed that Ikeja Electric, with ₦4.36 billion would receive the highest amount, followed by Abuja DisCo with ₦2.99 billion.
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Others are Eko DisCo N2.92 billion, Ibadan DisCo N2.51 billion, Enugu DisCo ₦1.72 billion, Benin DisCo ₦1.57 billion, Kano DisCo ₦1.56 billion, Port Harcourt DisCo ₦1.36 billion, Kaduna Electric ₦1.22 billion, Jos DisCo ₦521.90 million and Yola DisCo ₦243.35 million.
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