Power distribution companies (DisCos) on Monday projected that it would take one or two years to close the about 8.1 million metering gap in Nigeria’s electricity supply industry.
Data on metering released in January by the Nigerian Electricity Regulatory Commission (NERC) showed that as at November 2021, about 8.1 million power users out of the 12.8 million registered customers were unmetered.
Reacting to concerns about meter provision, the Association of Nigerian Electricity Distributors, the umbrella body for DisCos, explained that not all approved metering schemes currently active across the country would offer meters at no immediate expense to customers.
The Executive Director, Research and Advocacy, ANED, Sunny Oduntan, said in a statement issued in Abuja that while it would take between one or two years to close the metering gap, customers must understand the different channels through which they could obtain meters.
He further explained that while the National Mass Metering Programme of the Federal Government was initiated to offer free meters, the Meter Asset Provider scheme was not created for immediate free meter provision.
He said: “Under the Nigerian Electricity Regulatory Commission’s ‘Meter Asset Provider and National Mass Metering Regulations,’ Regulation No. NERC-R-11-2021, there are two metering programmes.
“The programmes include the National Mass Metering Programme and the Meter Asset Provider. The NMMP is a policy intervention by the Federal Government, with funding from the Central Bank of Nigeria.
“This programme commenced in 2021 and the objective of the programme is to expeditiously close the electricity metering gap. These meters are provided free of charge to customers and as loans to the electricity distribution companies.”
Oduntan said the first phase of the NMMP covered the delivery and installation of one million meters and was concluded in October 2021.
He stated that in the second phase, four million more meters were expected to be installed in the homes and businesses of unmetered power users.
The DisCos’ spokesperson further stated that the second route to obtaining a meter was under the Meter Asset Provider scheme which was approved in 2018.
“This avenue is available to customers who are unwilling to wait for the availability of meters under the NMMP,” he said.
The ANED official added: “Such customers can pay for a meter under the scheme. The amount paid by the customer will be amortised and refunded over a 36-month period via energy credit.
“This twin approach is aimed at closing the metering gap in the next one or two years so that estimated billing will be reduced to a minimum.
“However, of note is that under the second programme, with the advantage of expedited delivery and installation, the customer has to first pay for the meter before being refunded. Ultimately, the meter is free to the customer, via the energy credits.”
Oduntan stated that the implementation of phase zero of the NMMP had been concluded by all the DisCos, while the firms were currently awaiting the commencement of phase one.
He said all the DisCos were finalising the documentation and disbursement requirements of the funding for phase one, with an expected kick-off of the same soonest.
“It is important to clarify that the DisCos are operating within the regulatory guidelines established by their regulator, NERC, relative to meeting customer metering requirements,” Oduntan stated.