The Nigerian Electricity Regulatory Commission (NERC) on Friday released 21 billion naira to electricity distribution companies (DisCos) to procure meters for customers. These funds come from the Meter Acquisition Fund (MAF) aimed at addressing the critical meter shortage in the Nigeria Electricity Supply Industry (NESI).
According to NERC data, as at April 2024, only 44.67% of the 13.4 million registered customers had electricity meters. The MAF is part of the multi-year tariff and sets the rates that customers pay.
NERC Engr. Sanusi Garba and Legal Commissioner Dale Akpenye alleged that low meter tariffs were due to the inability of DisCos to raise funds from lenders.
They stated “funding under the MAF program is aimed at accelerating meter rollout and bridging the current metering gap, thereby reducing DisCos’ commercial and collection losses, improving service quality, and enhancing customer satisfaction.”
They stressed the need to accelerate metering for tariff band A customers to secure revenue and effectively manage demand. As of the April 2024 market settlement cycle, 21.86 billion naira is available for the first tranche of meter procurement under the MAF program.
The Nigerian Electricity Regulatory Commission (NERC) has authorized the allocation of 21 billion naira as the first instalment (Tranche A) of the Meter Asset Financing (MAF) program. The amount is to be distributed among the Electricity Distribution Companies (DisCos) in accordance with their respective contributions. This financing is earmarked specifically for the installation of meters for non-metered Band A customers within the DisCos franchise areas.
DisCos shall determine meter prices within 14 days from the effective date of the order and conduct a transparent and competitive procurement process to select Meter Asset Providers (MAPs)/Local Meter Manufacturers and Assemblers (LMMAs) to participate in the MAF program.
The breakdown of allocation among the DisCos is as follows:
Ikeja Electric: N4.36 billion
Abuja DisCo: N2.99 billion
Eko DisCo: N2.92 billion
Ibadan DisCo: N2.51 billion
Enugu DisCo: N1.72 billion
Benin DisCo: N1.57 billion
Kano DisCo: N1.56 billion
Port Harcourt DisCo: N1.36 billion naira
Kaduna Electric: N1.22 billion
Jos DisCo: N521.90 million
Yola DisCo: N243.35 million
In a related development, the Kano Electricity Distribution Company (KEDCO) has commenced legal proceedings against the Manufacturers Association of Nigeria (MAN) over a tariff dispute over monthly revenue.KEDCO Head of Corporate Communications, Mr Sani Bala Sani, explained that MAN had instructed its members not to pay the new Band A electricity tariff approved by NERC in April, resulting in a huge loss of revenue for KEDCO.
KEDCO noted that various macroeconomic factors such as exchange rates, gas prices, and inflation necessitated the increase in tariff from N159.13 to N225.00 per kWh and accused MAN of unlawful interference.
The company alleges that Band A customers defaulted on their obligation to pay the newly approved tariffs at the direction of MAN, thereby unfairly burdening KEDCO with the effects of the removal of subsidy for Band A customers.
