The Nigerian Electricity Regulatory Commission (NERC) has allocated ₦21 billion to 11 electricity Distribution Companies (DisCos) to supply free meters to end-use customers under the Presidential Metering Initiative.
On June 19, 2024, the Nigerian Electricity Regulatory Commission (NERC) announced the approval of ₦21 billion for 11 electricity Distribution Companies (DisCos) to procure and install meters for end-use customers at no cost. This initiative is part of the Presidential Metering Initiative (PMI), aimed at closing the metering gap in Nigeria’s electricity supply industry (NESI).
Detailed in NERC’s ORDER NO: NERC/2024/072, the allocation is designated as “Tranche A” of the Meter Acquisition Fund (MAF). The order, signed by NERC Chairman Engr. Sanusi Garba and Commissioner Legal, will take effect on June 13, 2024, and outlines the pro rata distribution of funds based on each DisCo’s contribution.
“The Commission hereby approves the use of a sum of ₦21,000,000,000 apportioned pro rata to contribution by the DisCos as Tranche A of the MAF scheme. 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,” the order states.
NERC emphasized that the meters acquired through this funding will be provided free to customers. “All the meters to be procured and installed under the MAF framework shall be at no cost to the customers of the DisCos,” NERC clarified.
This directive builds on previous initiatives, including the Meter Asset Provider (MAP) Regulations of 2018 and the Meter Asset Provider and National Mass Metering (MAP&NMMR) Regulations of 2021, which sought to address the widespread metering gap in NESI. Despite these efforts, the metering deficit still exceeds seven million customers.
The Meter Acquisition Fund (MAF) was developed to overcome financing hurdles faced by DisCos in acquiring and deploying meters. It aims to establish a reliable revenue stream to secure long-term financing for metering projects, addressing the challenge of DisCo creditworthiness.
The PMI’s goal is to close the metering gap within three years using smart metering technologies for improved data analytics. The fund will contribute to the repayment of long-term financing required for metering.
In addition to the fund allocation, NERC has deregulated meter prices under the MAP scheme through Order NERC/2024/040, ensuring efficient pricing through a transparent and competitive bidding process. On May 21, 2024, a competitive bidding was held involving 24 MAPs and 12 DisCos, resulting in 44 bids for 10 meter specifications
