Fatshimetrie has just published a groundbreaking announcement regarding the Operationalization of “Tranche A” of the Presidential Metering Initiative under the Meter Acquisition Fund Framework. This decision is recorded in ORDER No: NERC/2024/072 of the Nigeria Electricity Sector Regulatory Commission (NERC).
Signed by the NERC Chairman, Mr. Sanusi Garba, and the Legal Commissioner, Dafe Akpeneye, this decree will come into force from June 2024 and may be amended or revoked by subsequent orders issued by the commission.
In this decree, the commission approves the sum of N21 billion, distributed pro rata based on the contribution of the electricity distribution companies (DisCos), as Tranche A of the Meter Acquisition Fund program .
The text stipulates that all meters to be acquired and installed under the Meter Acquisition Fund program will be free of charge for DisCos customers. This measure aims to address the solvency challenges of DisCos that hamper the deployment of meters to end customers, as well as other necessary capital investments.
NERC introduced the Metering Asset Supplier (FAC) Regulations, in 2018, and subsequently the Metering Asset Supplier and National Mass Metering Regulations, in 2021, to address the challenges of metering in the Nigerian electricity industry. Despite these significant interventions, the national metering deficit amounts to more than seven million customers.
The Meter Acquisition Fund was designed and approved by the commission to address this challenge, by establishing a credible revenue stream that power companies can rely on for long-term financing.
The management of the Fund will be entrusted to a Fund Manager based on terms and conditions negotiated by the DisCos and approved by the commission. This Fund is part of the Presidential Metering Initiative, aimed at closing the metering gap in the Nigerian electricity industry within three years, by leveraging smart metering technologies for data analysis.
In addition to accelerating the deployment of meters and filling the current metering gap, the Meter Acquisition Fund will help reduce commercial losses and unpaid debts of DisCos, thereby improving the quality of services and customer satisfaction.
Finally, the commission approved the deregulation of meter prices under the Meter Asset Provider program to ensure efficient meter pricing and rapid response to changes in macroeconomic parameters. A transparent and competitive tender process was conducted recently, highlighting the engagement of 24 Metering Asset Providers across the various electricity distribution zones.
This decision by NERC will have a significant impact on Nigeria’s energy landscape, accelerating the transition to a more efficient metering system and promoting better resource management. The transparency and efficiency of this initiative enhances consumer confidence in the electricity sector, paving the way for sustainable improvements for all stakeholders.