The Nigerian Electricity Regulatory Commission gives electricity distribution companies eight months deadline to align with its newly released meter asset provider regulation

By Anayo Ezugwu

THE Nigerian Electricity Regulatory Commission, NERC, has set December 31,  as deadline for electricity distribution companies, Discos, to wind up existing metering contracts and align with its newly released meter asset provider, MAP, regulation. The commission said the MAP regulation will not over-ride existing metering contracts already entered into by distribution licensee.

But is insists that existing metering contracts must transit to the provisions of the MAP regulation after the deadline. In March, the NERC approved a regulation that provides for the supply, installation, and maintenance of end-user meters by other parties.

According to the commission, the regulation is a renewed effort to ensure that electricity customers only pay for what they actually consume. The regulation is expected to fast-track a closure to the metering gap and encourage the development of independent and competitive meter services in the electricity industry.

The Meter Asset Provider regulation (Regulation No. NERC/R/112), which  became effective on April 3, introduces meter asset providers as a new set of service providers in Nigeria Electricity Supply Industry. As assets with a technically useful life of 10-15 years, the regulation provides for the third-party financing of meters, under a permit issued by the commission, and amortization over a period of 10 years.

In the new regulation, the electricity distribution companies, in line with their licensing terms and conditions, are obliged to achieve their metering targets as set by NERC.

The NERC, in a statement, said contracting of meter asset providers would be through an open, transparent and competitive bid process thus, ensuring that meters are provided at lowest cost to electricity customers. There are no free meters under the current tariff regime as all customers, including those on estimated billing, currently, pay for a return on the investment made by electricity distribution companies on meters in their networks.

However, the NERC said under the new MAP regulation, customer classes will be amended to ensure that customers pay only for meters that are physically installed on their premises. The electricity bill of customers provided with a meter under the new regulatory framework shall comprise of two parts – energy charge and metering service charge.

“The payment of metering service charge will be removed from the customer electricity bill upon the full amortisation of the meter asset over its useful life. All faulty meters are expected to be repaired or replaced free of charge within two working days, except in instances where it is established that the customer is responsible for the damaged meter,” it said.

In pursuit of promoting local content, NERC explained that the new MAP regulation mandates the investors to acquire a minimum of 30 percent of their metering volume from indigenous meter manufacturers. However, the local content threshold may be adjusted by the commission from time to time in line with the verified manufacturing volume of local manufacturers.

The 11 electricity distribution companies are expected to, within 120 days from the effective date of the regulation, engage the services of MAPs towards the achievement of their three-year metering targets prescribed by NERC. “The performance of meter service providers shall be governed by the provisions of the meter asset regulation, technical codes of the electricity industry, and a meter services agreement and service level agreement signed with the distribution companies.”

– Apr. 7, 2018 @ 4:20 GMT

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