The Nigerian Electricity Regulation Commission says it has approved N28 billion for the procurement of meters for all outstanding unmetered Band A customers at no cost.
This announcement was disclosed in the Order on the Operationalisation of Tranche B of the Meter Acquisition Fund by NERC and signed by its vice-chairman, Musiliu Oseni, and commissioner for legal, licensing, and compliance, Dafe Akpeneye.
According to the order, the funds approved under Tranche B of the MAF scheme are intended not only to meter all outstanding unmetered Band A customers but also to expedite the closure of the metering gap for customers currently classified under Tariff Band B.
”The N28 billion shall be allocated in proportion to the respective contributions of the electricity distribution companies (DisCos), and is intended to meter all outstanding unmetered Band A customers. While also expediting the closure of the metering gap for customers currently classified under Tariff Band B.
“Schedule 1 provides the detailed breakdown of the funds available to each DisCo for the purchase of end-use customer meters. All the meters to be procured and installed under the MAF framework shall be provided at no cost to the customers,” he said.
The commission said that the order seeks to establish a clear and transparent framework for the implementation of tranche B of the MAF scheme.
It also said that the order seeks to define the eligibility requirements and obligations of DisCos and Meter Asset Providers in accessing and utilising funds under Tranche.
“It prescribes the terms of financing, repayment, and utilisation of funds under the scheme. It also sets out the monitoring, reporting, and evaluation requirements to ensure accountability, efficiency, and transparency in the deployment of MAF-funded meters.
”Provide operational guidelines and conditions applicable to participating entities to safeguard the integrity of the MAF scheme,” it said.
Giving a breakdown of the releases of funds accrued under MAF, NERC explained that in April 2024, out of the accrued N21,864,851,725, it released the N21 billion to the DisCos for the procurement of meters under tranche A of the MAF scheme.
It added, ‘The latest being the N28 billion released under tranche B of the MAF scheme.”
According to the order, NESI is expected to mobilise significant capital investments for metering through the revenue streams created under the MAF framework.
”There is an urgent and compelling need to accelerate the closure of the metering gap for all customers currently classified under Tariff Band A to safeguard revenue protection and enable effective demand-side management,” it said.
(NAN)