What new metering regulation by NERC portends for electricity consumers

There is no gain saying the fact that issues around the electricity sector in Nigeria has been one filled with dangerous turns of challenges across the various value chains.

A cursory look at the sector show that inappropriate charges arising from estimated billings that had bedeviled the sector over the years became aggravated since the hand over to private owners leading to the controversy between the distribution companies and consumers.

A 2016 data from the Nigerian Electricity Regulatory Commission (NERC), states that over three million out of the estimated 7.47 million customers nationwide have pre-paid meters meaning that only 45 percent of customers have access to them.

With the poor performance of the electricity power sector in Nigeria has been a significant barrier to private investment in the country, the overall development and economic growth.

In the views of industry close watchers, the dissatisfaction by electricity consumers with the performance of the various distribution companies (DISCOs) symptomised by its inability to provide adequate meters to service consumers.

It is against this backdrop that the recent release of the much-anticipated electricity meter regulation by Nigerian Electricity Regulatory Agency (NERC) has being hailed as a welcome development.

Under the new regulation, private investors excluding the distribution companies can now procure meters in understanding with the concerned DISCOs to recoup their fees through charges built into the end user’s electricity bill.

Sanusi Garba, vice chairman, NERC was quoted to have said the N39 billion ($108 million), recently approved by the Federal executive council (FEC), will be loaned to certified investors on application as a measure to encourage investment. According to him, “DISCOs will now advertise for Meter Access Providers (MAP).

Reports indicate that MAPs will be independent people who will be approved by NERC but contracted by the DISCOs to bridge the metering gap. In doing this, there will be various options available to customers.

Dafe Akpeneye, Commissioner, Legal, Licensing, and Compliance, NERC, said MAPs would now take up the duty of providing meters to customers, among other functions.

According to him, “Electricity consumers will now have the option of self-financing. Those who do not want this will be able to obtain meters from MAPs and there will be a metering service charge spread over a period of 10 years”.

Babatunde Fashola, minister of power, Works and Housing at different fora maintained that meter procurement is not the core business of the DISCOs. “Their major focus is to provide key distribution facilities like transformers, poles, cables, etc. where they are needed, and distribute power”.

Those who know in the industry observe that collaboration with investors in this new market space is needed to drive the adoption of a strategic direction that would reposition the power sector for optimised performance.

They are of the views that leveraging on the anticipated investment influx this new regulation will attract, it will equally advance system stability and improved service delivery across board.

According to them, “The new metering regulation if implemented with the transparency it deserve, would enable electricity consumers resolve once and for all the critical challenges of dealing with the excesses of discos and other electricity hiccups”.

KELECHI EWUZIE