Launched in June 2024, the Presidential Meter Acquisition Fund Tranche A initiative is another major step in the modernization of the electricity sector in Nigeria. This initiative, presented in NERC ORDINANCE NO: NERC/2024/072, aims to accelerate the distribution and installation of customer meters by distribution companies (“DisCos”) throughout the country.
The order, signed by the Chairman of the NERC, Mr. Sanusi Garba, and the Legal Commissioner, Dafe Akpeneye, approves a package of N21 billion distributed pro-rata based on the contributions of the DisCos to “Tranche A ” of the Meter Acquisition Fund program. This sum will allow the purchase of meters for end customers at no additional cost to them.
This initiative follows the introduction of the Meter Supplier Regulations (“MAP”) in 2018 and more recently the Meter Supplier and National Mass Metering Regulations (“MAP&NMMR”) in 2021, aimed at solving the challenges metering in the Nigerian electricity industry. Despite this progress, the national meter deficit remains significant, affecting more than seven million customers.
The implementation of the Meter Acquisition Fund aims to compensate for the lack of capacity of DisCos to finance the acquisition and deployment of meters for end customers. By providing a reliable source of funding, this initiative will allow utilities to obtain long-term financial support for customer metering.
At the same time, the federal government approved the Presidential Metering Initiative (PMI) with the main objective of closing the metering gap in the electricity sector in three years, using smart metering technologies for the analysis of data. The Meter Acquisition Fund will constitute one of the sources of income for the reimbursement of long-term financing intended for metering.
Additionally, the ordinance deregulated meter prices under the Meter Suppliers program, ensuring effective pricing and rapid response to macroeconomic fluctuations. A competitive tender process was launched in May 2024, bringing together 24 Meter Suppliers to bid on 10 different specifications.
The implementation of the Meter Acquisition Fund should accelerate the deployment of meters and reduce the current metering deficit, allowing DisCos to reduce their commercial losses and improve the quality of service for enhanced customer satisfaction.
To ensure transparency and fairness, DisCos will have to conduct a procurement process to determine meter prices, select Meter Suppliers and submit necessary information to NERC for approval. This will ensure the effective implementation of the Meter Acquisition Fund program and bring Nigeria closer to solving the metering challenges in the electricity sector.
—
This written article offers a coherent, argued and informative summary of the news of the Tranche A initiative of the Meter Acquisition Fund in Nigeria. The focus is on the current challenges of the electricity sector and the measures taken to improve the distribution of customer meters.