NERC Approves N21 Billion to Procure, Install Free Prepaid Metres For Nigerians, Lists Beneficiaries

• The Nigerian Electricity Distribution Commission (NERC) has approved about N21 billion to provide prepaid meters for electricity consumers
• The Commission disclosed that the the first tranche of the fund has been disbursed to the 11 DisCos to meter unmetered Band A users
• The breakdown shows that Ikeja Electric received the most significant sum of N4.35 billion as the nation’s largest DisCo 

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The Nigerian Electricity Regulatory Commission (NERC) has approved about N21 billion from the Meter Acquisition Fund (MAF) scheme to procure and install meters for Band A consumers.

The 11 electricity distribution companies will receive the amount as the first tranche of disbursement from the MAF programe based on contributions made by the DisCos as of the April 2024 market settlement.

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Ikeja Electric gets the lion's share

Abuja DisCos received N2.99 billion, Eko DisCo N2.92 billion, Enugu DisCo N1.72 billion, and Ibadan DisCo N2.51 billion.

Others include Ikeja Electric N4.35 billion, Jos DisCo N521 million, Kaduna DisCo N1.22 billion, Kano DisCo N1.56 billion, Port Harcourt DisCo N1.36 billion and Yola DisCo N243 million, respectively.

Reports say the introduction of the MAF scheme follows the inability of previous programmes and strategies, including the Meter Asset Provider (MAP) Regulations 2018  and the national mass metering scheme, to address the metering challenges in the Nigerian Electricity Supply Industry (NESI).

Seven million consumers remain unmetered

According to reports, Nigeria’s total metering gap reportedly stands at seven million customers.

NERC disclosed that the inability of DisCos to raise funds via debts or additional equity is the major setback in acquiring and deploying meters to end-users and other capital investments.

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The Commission noted that while NESI is expected to leverage the revenue stream under the MAF scheme to raise capital for metering, it is crucial to accelerate the closure of the metering gap for all customers classified under the Band A tariff for revenue protection.

NERC issues new guidelines to DisCos

In April this year, NERC issued new guidelines to the DisCos regarding executing the April 2024 Multi-Year Tariff Order. 

The statement, signed by Abba Terab, NERC’s Deputy General Manager of Market Competition and Rates, on Saturday, encompasses these directives. 

In a preceding announcement, NERC mandated the prompt escalation of electricity tariffs for customers categorized under Band A, effective Wednesday, April 3. 

The Nigerian government recently increased its electricity tariff by more than 300% for some categories of consumers, leading to an outcry among Nigerians.

FG gives orders to reduce electricity export

Legit.ng earlier reported that NERC is set to enhance power supply to domestic consumers following its orders directing the System Operator (SO) to cap supplies to international customers by 6 per cent of domestic supplies.

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The affected countries include Togo, Benin Republic and the Niger Republic.

The development comes amid a high level of indebtedness and non-remittance of electricity bills supplied to the countries over the years.

Source: Legit.ng