N21bn approved for free meter installation by DisCos

The Nigerian Electricity Regulatory Commission (NERC) has taken a significant step towards improving electricity access in Nigeria by approving N21 billion for 11 electricity Distribution Companies (DisCos) to provide free meters to customers.

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.

In addition, NERC’s order has deregulated meter prices under the Meter Asset Provider (MAP) scheme, promoting transparency and competition. A recent bidding event, which saw participation from 24 MAPs and 44 bids across all Distribution Companies (DisCos), is expected to boost metering efficiency and service delivery across the country.

By providing free meters through DisCos, NERC aims to empower consumers with accurate metering, enhancing transparency and efficiency in the electricity supply chain and ensuring a reliable and sustainable electricity supply across Nigeria.