FG has approved N21bn for meters –NERC

The Nigerian Electricity Regulatory Commission (NERC) has announced the approval of N21 billion for 11 Distribution Companies (DisCos) to provide meters for customers.

The announcement was made in NERC’s ORDER NO: NERC/2024/072 on the operationalisation of “Tranche A” of the Presidential Metering Initiative under the Framework of Meter Acquisition Fund (MAF).

NERC said, “The order, signed by NERC’s Chairman, Mr Sanusi Garba, and Commissioner, Legal, Dafe Akpeneye, shall become effective from June, 2024, and may be amended or revoked by subsequent orders issued by the commission.

“The commission hereby approves the sum of N21bn apportioned pro rata to contribution by the DisCos as Tranche A of the MAF scheme.

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“Attached to this order as Schedule 1 is a breakdown of the funds available for each DisCo for the purchase of end-use customer meters.

“All the meters to be procured and installed under the MAF framework shall be at no cost to the customers of the DisCos.”

It noted that it introduced the MAP Regulations 2018 and subsequently, the Meter Asset Provider (MAP) and the National Mass Metering (MAP&NMMR) regulations in 2021 to address metering challenges in the Nigerian Electricity Supply Industry (NESI).

NERC further said that the regulations provided several options for metering end-use customers, but that the interventions, though significant, had not resulted in the closure of the national metering gap which currently stood in excess of seven million customers.

“The inability of DisCos to raise financing in the form of debt or additional equity was identified as the major constraint in the acquisition and deployment of end-use meters and other capital investments.

“The MAF scheme was, therefore, developed and approved by the commission primarily to address the challenges of DisCos’ creditworthiness inhibiting the deployment of end-use meters in NESI.

“By creating a credible revenue stream from the market funds on the back of which long-term financing may be secured by the utilities,” it said.

NERC also noted that while the NESI was expected to leverage on the revenue stream under the MAF framework to raise substantial capital funding for metering, there was an imperative to accelerate a closure of the metering gap for all customers. (NAN)