Ikeja Electric and Abuja Electricity Distribution Company got the lion’s share as the Nigerian Electricity Regulatory Commission, NERC, approved N21 billion for discos, to procure meters for customers.
NERC disclosed this in a meter order signed by its chairman, Sanusi Garba, and Commissioner for Legal, Dafe Akpeneye, on Friday.
Accordingly, the approved amount which will come from the Meter Acquisition Fund, MAF, would enable the utilities to address the huge metering gap in the Nigerian Electricity Supply Industry, NESI.
NERC blamed the metering gap in Nigeria on the inability of the DisCos to raise financing from lenders.
This is as NERC’s data showed that as of the end of April 2024, only 44.67 per cent of the total 13.4 million registered customers have electricity meters.
MAF is a component of the Multi-Year Tariff Order that sets out the tariff payable by customers.
NERC stated: “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 and collection losses to DisCos, enhancing quality of service and improvement of 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 of 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: “DisCos shall utilize 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.
“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. ”
Further analysis of the approved fund showed that Ikeja Electric is allocated N4.36 billion and would receive the highest amount, followed by Abuja Electricity Distribution Company, DisCo with N2.99 billion.
Others are Eko DisCo, 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.