The Nigerian Electricity Regulatory Commission has sanctioned a substantial allocation of N21 billion for the eleven electricity Distribution Companies to provide meters at no cost to end-use customers.
This announcement was made on Friday, June 21, and detailed in ORDER NO: NERC/2024/072, pertaining to the implementation of “Tranche A” of the Presidential Metering Initiative under the Meter Acquisition Fund framework.
According to NERC, the DisCos are mandated to purchase and install these meters for customers free of charge under the Meter Acquisition Fund scheme.
The commission revealed that funds amounting to NGN21,864,851,725 had accrued by the April 2024 market settlement cycle. Out of this, NERC has approved N21 billion for immediate disbursement, distributed proportionally among the DisCos based on their contributions.
The funds will be used to procure meters for end-use customers, and the allocation for each DisCo is detailed in Schedule 1 attached to the order.
NERC emphasized that all meters provided under the MAF framework will be installed at no cost to customers. This initiative aims to expedite meter deployment, close the existing metering gap, and reduce commercial and collection losses for DisCos, thereby enhancing service quality and customer satisfaction.
The first tranche of funds, “Tranche A,” will be utilized by DisCos to procure and install meters for unmetered Band A customers within their service areas. This effort is part of a broader strategy to protect revenue and manage demand more effectively.
Additionally, NERC highlighted the need for a transparent and competitive procurement process to determine meter prices and engage Meter Asset Providers and Licensed Meter Manufacturers and Assemblers (LMMAs) for the metering project.
Earlier reports from Nairametrics indicated that the Minister of Power, Adebayo Adelabu, confirmed the federal government’s plan to release N20 billion to DisCos for procuring meters for unmetered Band A customers within the next three months. Band A customers are those who receive a minimum of 20 hours of electricity per day and are charged a premium tariff of N208 per kilowatt-hour (kWh).
Minister Adelabu assured that these customers would receive their meters by the end of September, following an agreement with NERC Chairman, Alhaji Garba Sanusi, to utilize the accrued funds for this purpose.
