By SUNDAY ABBA, Abuja
Against the backdrop of the lingering metering gap in the Nigerian Electricity market, the Nigerian Electricity Regulatory Commission (NERC) has taken another step towards ensuring that all end-use customers of electricity in the country are metered as soon as possible.
The Commission has ordered the operationalisation of ‘Tranche A’ of the Meter Acquisition Fund (MAF) the latest presidential metering initiative.
NERC’s latest order numbered: NERC/2024/072 and titled: “Order on the Operationalisation of ‘Tranche A’ of the Meter Acquisition Fund”, was made available to pressmen on Friday.
“This Order shall become effective on 13th June 2024 and may be amended or
revoked by subsequent Orders issued by the Nigerian Electricity Regulatory Commission, NERC or the “Commission, the regulator said.
NERC said it introduced the Meter Asset Provider (MAP) Regulations 2018 and subsequently, the National Mass Metering Programme (NMMP) Regulations in 2021 and several other significant interventions in the past to address metering challenges in the Nigerian Electricity Supply Industry (NESI) and get end-use customers metered but such have not resulted in the closure of the national metering gap which currently stands in excess of 7 million customers.
“The inability of distribution companies, DisCos, to raise financing in the form of debt or additional equity was identified as the major constraint in the acquisition and deployment of end-use meters and other capital investments.
“The Meter Acquisition Fund, MAF, scheme was therefore developed and approved by the Commission, primarily to address the challenge of DisCo creditworthiness inhibiting the deployment of end-use meters in NESI by creating a credible revenue stream from the market funds on the back of which long term financing may be secured by the utilities.
“All the meters to be procured and installed under the MAF framework shall be at no cost to the customers of the DisCos,” NERC explained.
According to the new order, “DisCos shall utilise the first tranche of disbursement from the MAF scheme based on contributions made by DisCos as at the April 2024 market settlement and attached to this Order as Schedule 1, to procure and install meters for unmetered Band ‘A’ customers within their franchise areas.
“DisCos shall, within 14 days from the effective date of this Order, conduct a transparent and competitive procurement process, for meter price determination, selection, and engagement of MAPs/LMMAs for the metering of end-use customer
meters under the MAF scheme.
“A report containing details of the process undertaken for the selection of
MAPs/LMMA:s, including meter price, meter specifications, and the list of customers to be metered shall be sent to the Commission for approval within 20 days from the effective date of this Order.
Upon approval of the Commission, the DisCo shall enter into contracts with selected MAPs/LMMAs based on some terms prescribed by the regulator three-at.
The objectives of the new development and eligibility for accessing the funds were also clearly spelt out in the order made by NERC.