NERC enforces New Metering Rule in April

Sat, Mar 17, 2018 | By publisher


Power

The Nigerian Electricity Regulatory Commission begins enforcing new policy on meter asset provider regulations on April 3

 

THE Nigerian Electricity Regulatory Commission, NERC, is ready to enforce its recently unveiled Meter Asset Provider Regulations 2018, from April 3. The new metering rule is a policy that seeks to bridge the widening metering gap in the electricity supply industry.

It is aimed at developing independent and competitive meter services in the power sector. According to the Meter Asset Provider Regulations 2018, the new arrangement will eliminate the estimated billing practice; attract private investment into the provision of metering services; and close the metering gap through accelerated meter rollout in the Nigerian electricity supply industry.

The distribution licensees (Discos), according to the regulations, are responsible for meeting their metering target as specified by the regulator from time to time. They are expected to engage the services of Meter Asset Providers in accordance with the provisions of the regulations.

The metering gap for all distribution licensees was put at 4,740,275 meters as of December 31, 2017. “This is projected to significantly increase upon the conclusion of the ongoing customer enumeration exercise,” the regulator said.

According to the document, customers being served under the Eligible Customer Regulations may engage MAPs to ensure proper energy accounting.

However, electricity distribution companies have refused to comment on the new regulation from the NERC. Instead, the Association of Nigerian Electricity Distributors, ANED, the umbrella body of distribution companies in the country, said its members remained committed to providing meters to all their customers.

Sunday Oduntan, executive director, research and advocacy, ANED, in an interview with Punch newspaper, said, “For now, we have no comment; we are studying the situation and watching as the details come in and events unfold. Anything that will positively make metering better, we will always support it. But this particular one, I can tell you we have no comment for now; we are not condemning it and we are not commending it.”

Asked if the Discos were carried along in the process of drafting the regulations, he said, “When people say they have carried you along, informing you that they are doing something is not the same as carrying you along. Let’s wait and see; if it works for the nation, we will be happy.”

Based on the proposals submitted by the core investors in the Discos during the privatisation of the power firms in November 2013, about 6.52 million new meters were expected to be installed over the course of five years.

Oduntan blamed the inability of discos to provide meters to customers as envisaged during privatisation on the lack of a cost-reflective electricity tariff.

He said, “When you have an agreement with the other party and they say you, the new investor, must do XYZ, and we, the government, will do ABC. The performance of XYZ is conditional upon you doing your ABC. What they promised then was that they would give us a cost-reflective tariff.

“The moment you don’t get it right on the tariff side, every other thing will be wrong. You cannot build something on nothing. So, that is why I am saying: why are we deceiving Nigerians? Why can’t we come out and say these are the issues?”

But Muideen Ibrahim, executive secretary, Electricity Meters Manufacturers Association of Nigeria, commended NERC for the new regulations, which he described as a step in the right direction.

“Consumers need meters; Discos are not providing meters. Manufacturers have meters but they can’t sell to the consumers. So there is a big gap. Now that MAP has come up, it is another scheme that can be explored so that consumers will be metered as and when due,” he said.

According to the regulations, MAPs shall source a minimum of 30 percent of their contracted metering volume from local meter manufacturing companies in Nigeria.

“It is a very big lift. It will enable the meter manufacturers to be busy and will enhance their capacity. We were even agitating for 70 per cent local content; the potential is there for the local manufacturers but the capacity utilisation is low,” Ibrahim said.

There are estimated 10 million electricity customers in the country with only three million meters, according to the Federal Ministry of Power, Works and Housing.

This was contained in the communiqué of the third retreat for directors, chief executive officers and heads of units of the ministry held in Kano on March 9 and 10.

It said the expansion of the distribution system and financial viability of the entire power system was constrained by losses in the distribution system.

“One of the major drivers of losses is the metering gap, which creates mistrust between customers and Discos. And this does not allow customers to pay for only what they consume, giving rise to estimated billing,” the ministry said.

– Mar. 17, 2018 @ 4:15 GMT |

Tags: