NERC okays N21bn for free meter distribution by DisCos

In a landmark move aimed at improving electricity access across Nigeria, the Nigerian Electricity Regulatory Commission (NERC) has approved the allocation of N21 billion to 11 electricity Distribution Companies (DisCos) for the provision of meters to end-use customers free of charge.

The approval, detailed in Order No: NERC/2024/072 under the Presidential Metering Initiative’s Tranche A, marks a significant step in addressing the nation’s metering deficit. NERC emphasized that all meters acquired under the Meter Acquisition Fund (MAF) scheme will come at no cost to consumers.

“The Commission hereby approves the use of a sum of NGN21,000,000,000 (twenty one billion Naira only) for Tranche A of the MAF scheme, allocated pro rata to the contribution by each DisCo,” stated NERC in its directive signed by Chairman Engr. Sanusi Garba and Commissioner Legal.

Effective from June 13, 2024, the initiative aims to leverage smart metering technologies to close Nigeria’s metering gap, which currently exceeds seven million customers. Previous efforts under the Meter Asset Provider (MAP) Regulations and subsequent interventions have not fully addressed the challenge due to DisCos’ financial constraints.

Under the MAF scheme, DisCos will manage the acquisition and installation of meters, supported by terms negotiated with Fund Managers and approved by NERC. This move is part of the broader Presidential Metering Initiative (PMI) endorsed by the Federal Government, targeting comprehensive metering solutions within three years.

Furthermore, NERC’s order deregulates meter prices under the MAP scheme, ensuring transparency through competitive bidding processes. A recent bidding event involved 24 MAPs and 44 bids across all DisCos, setting the stage for enhanced metering efficiency and service delivery nationwide.

By facilitating free meter distribution through DisCos, NERC aims to empower consumers with reliable electricity metering, thereby enhancing transparency and efficiency in the electricity supply chain across Nigeria.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like