The Nigerian Electricity Regulatory Commission (NERC) has approved N21 billion for 11 Electricity Distribution Companies (DisCos) to provide meters to customers.
NERC gave approval in ORDER NO: NERC/2024/072 on Operationalization of “Phase A” of the Presidential Metering Initiative within the Framework of the Meter Acquisition Fund signed by its chairman, Sanusi Garba.
It reads: “The order signed by NERC Chairman, Mr Sanusi Garba and Law Commissioner, Dafe Akpeneye, is effective from June 2024 and may be amended or revoked by subsequent orders issued by the commission.
“The Commission hereby approves the amount of N21 billion to be distributed on a pro rata basis for the contribution of DisCos as Phase A of the MAF scheme.
“Attached to this order as Schedule 1 are details of funds available to each DisCo for purchase of end-use customer meters.
“All meters to be purchased and installed under the MAF framework will be at no cost to DisCos customers.”
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The Commission introduced the Meter Asset Provider Regulations (“MAP”) in 2018 and subsequently, the National Mass Metering and Meter Asset Provider Regulations (“MAP&NMMR”) in 2021 to address metering challenges in the Nigerian Electricity Supply Industry (“NESI”).
The regulations provide several options for measuring end-user customers, but the interventions, although significant, have not succeeded in closing the national measurement gap which currently amounts to more than seven million customers.
“The inability of distribution companies (DisCos) to raise financing in the form of debt or additional equity was identified as a major obstacle to the acquisition and deployment of end-use meters and other capital investments.
“Therefore, the Meter Acquisition Fund (MAF) scheme was developed and approved by the commission, primarily to address the creditworthiness challenges of DisCos that were hampering the adoption of end-use metering in NESI.
“By creating a credible revenue stream from market funds that can guarantee long-term financing by utilities,” he said.
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