Nigerians to fund N21b worth of meters for band a customers

The Nigerian Electricity Regulatory Commission (NERC) has allocated a total of N21 billion from the Meter Acquisition Fund (MAF) to 11 electricity Distribution Companies (DisCos) to provide prepaid metres for customers under band A.

While the MAF is contributed by all electricity customers in Nigeria into a pool overseen by NERC and is expected to stand at about N31 billion in 2024, the regulator, in an order yesterday, said about N21 billion of the fund would be used in closing the metering gap for the 25 per cent customers that are under band A.

The development, which appears like robbing Peter to pay Paul, would leave out the 75 per cent of electricity consumers, who are contending with lesser power supply.

But sources at NERC told The Guardian that it is imperative to close the metering gap for the customers who are paying high tariff before focusing on the rest of the market.

The initiative, which aims to provide metres for customers at no cost, would see Abuja Electricity Distribution Company (AEDC) receive N2,990,745,647; Benin Electricity Distribution Company (BEDC) N1,571,276,806; Eko Electricity Distribution Company (EKEDC) N2,921,896,285; Enugu Electricity Distribution Company (EEDC) received N1,726,893,467 and Ibadan Electricity Distribution Company (IBEDC) received N2,516,469,752.

Further allocations include Ikeja Electricity Distribution Company (IE) with N4,358,122,421; Jos Electricity Distribution Company (JEDC) N521,905,774; Kaduna Electricity Distribution Company (KAEDC) with N1,220,367,039; Kano Electricity Distribution Company (KEDCO) N1,568,029,563; Port Harcourt Electricity Distribution Company (PHEDC) N1,360,944,608 and Yola Electricity Distribution Company (YEDC) with N243,348,639.

While the funding is coming from the bills paid by Nigerians, NERC said it is a part of the Presidential Metering Initiative aimed at closing the national metering gap and enhancing service delivery within the Nigerian Electricity Supply Industry (NESI).

NERC emphasised that the DisCos must procure and install these metres at no cost to the customers, stressing: “All the metres to be procured and installed under the MAF framework shall be at no cost to the customers of the DisCos.”

The order, signed by NERC Chairman, Sanusi Garba, is expected to have taken effect on June 13, 2024, and may be amended or revoked by subsequent orders issued by the commission.