Nigerian government formulates new policy to improve meter supply to electricity consumers

By Anayo Ezugwu

The federal government has assured Nigerians there will be improvement in meter supply to electricity consumers following the approval of new regulations for meter asset providers.

Babatunde Fashola minister of power, works and housing, said the challenge of meter supply was one of the problems among other issues that the government was resolving with the Power Sector Recovery Programme, PSRP.

“For meters specifically, it will get better, which is one of the problems we intend to solve under the PSRP. Every problem that afflicts the industry that we have seen is in that PSRP, so that PSRP is like the first aid kit, it is like a do it all box, if new problems comes we will throw it inside.

“So specifically about meters, you would have heard that on Monday at our meeting in Uyo, the regulator presented the regulations that allows new meter asset providers to now be licensed. What that means is that you can be a meter assets provider if you meet the conditions. What that means is that you are bringing money to help meter customers in a Disco.

“What it means is that you are relieving the financial pressure from the Discos, so the Discos can face their core business which is to distribute energy. Meters don’t distribute energy, meters measure energy that is been distributed. The core business of the Discos is to distribute energy, they need meters. But we want them to invest their own money in transformers, in circuit breakers, in re-conducting their lines which is really the heart of their business, so it will get better,” he said.

On her part, Kemi Adeosun, minister of finance, said effective and wholesome metering of electricity consumers by operators would in turn significantly improve billing accuracy as well as boost collections by electricity distribution companies, Discos.

The minister said the collections would facilitate increase in cash flows to the power sector value chain and ensure stability of federal government reforms in the sector. She added that if the market cannot pay for power distributed, the situation will remain unsustainable.

“It is unhealthy for the federal government of Nigeria to build an entire sector based on Sovereign Guarantees without simultaneously addressing key challenges inhibiting financial sustainability across the value chain,” Adeosun said. ‎

Based on the determination of the federal government to resolve the metering challenges, the Nigerian Electricity Regulatory Commission, NERC, said meter asset providers are expected to supply and install meters within 10 working days of payment on the premises of electricity customers who choose the option of paying for the meters.

NERC will commence the enforcement of the provisions of the regulation on April 3, 2018 which states: “Where a customer elects to pay for a meter asset upfront under this regulation, such a customer shall not be liable for the payment of metering service charge through the distribution licensee.”

The regulator said the amount payable to a MAP by a customer electing to pay upfront would be the efficient cost of the meter asset and its installation cost as determined by the procurement process for the MAP, conducted by the distribution licensee.

“The MAP shall install the meter on the premises of the customer within 10 working days of the receipt of full payment by the customer. The authorisation by the distribution licensee to pay for the meter shall only be issued after certifying the readiness of the premises for a safe and secure installation of the meter asset.”

According to the regulation, the distribution licensee and MAP shall enter into a metering service agreement, which shall provide for the number of meters to be installed by the MAP in the distribution licensee’s network over an agreed period and the recovery of the cost of meter asset plus a reasonable return over a period of 10 years, among others.

It said, “Upon the installation of a meter by a MAP, the customer has an obligation to pay for metering service charge through the distribution licensee at the time of payment for energy unless financed upfront in full by the customer.”

The regulator said the payment for metering service charge by the customer to a MAP would cease upon full amortisation of the meter asset over its technical life assumed in the procurement process for the MAP.

“Where a customer fails to pay for metering service charge in any given month or months, the cumulative metering service charge shall be deducted upon the subsequent payment. In line with guidelines for asset enumeration by distribution licensees, customers’ meters are associated with feeders and distribution transformers and shall not be moved by customers.

– Mar. 24, 2018 @ 4:45 GMT |