The new N21bn approved by the Federal Government for the metering of power users has been described as not only poor, but cannot comfortably meter 200,000 consumers out of the over seven million unmetered customers nationwide.
Recall that N21bn was approved by the Federal Government under the Presidential Metering Initiative to close the country’s metering gap by providing meters to unmetered power users at no cost.
That was announced in an order by the Nigerian Electricity Regulatory Commission on Friday with the number – NERC/2024/072, titled “Order on the Operationalisation of ‘Tranche A’ of the Meter Acquisition Fund”.
The commission stated that the deployment of funds under the Meter Acquisition Fund scheme would accelerate the deployment of meters and close the current metering gap.
However, while reacting to this on Saturday, power consumers wondered how the government would close the metering gap with N21bn, when the cost of a single-phase meter currently goes for about N105,000, while the three-phase meter costs over N200,000.
“Are they (the government) really planning to close the metering gap with N21bn, when we have over seven million unmetered customers in Nigeria? the National Secretary, Nigeria Electricity Consumer Advocacy Network, Uket Obonga, asked.
He added, “You are aware that about N256bn was said to have been released by CBN (Central Bank of Nigeria) to the Discos (distribution companies) under Phase 0 of the National Mass Metering Programme. Less than a million meters, about 900,000 meters were released at the time.
“And as at that time, the cost of a single-phase meter was below N40,000, while the three-phase meter was about N70,000. Now the cost of one meter today is between N106,000 and over N200,000 for single-phase and three-phase meters respectively.
“So, simple arithmetic would mean that if you take that N21bn and divide it by about N105,000, taking the single-phase meter, for instance, it will give you the number of meters that would be procured with the N21bn by the Discos.”
The National Mass Metering Programme provided 962,832 meters during phase 0, with the goal of installing one million meters.
The NMMP was established in 2020 to increase metering rates, eliminate arbitrary estimated billing, strengthen the local meter manufacturing sector, create jobs and reduce collection losses.
Obonga argued that the prices of meters were lower at the time of implementation of phase 0 of the NMMP, stressing that with N21bn and the current high meter prices, the government would not be able to meter a significant number of unmetered power users.
“Now, compare what N21bn will provide with the metering gap in Nigeria now and you’ll see that the amount is very poor when it comes to actually metering customers who lack meters. This is because when you divide the N21bn by N105,000, which is for single-phase meters as an instance, it will give you 200,000 meters.
“And this when we give them the benefit of doubt that the N21bn will be used 100 per cent for the procurement of meters. Remember, there is a metering gap of about eight million, now what is the percentage of 200,000 to eight million? It is 2.5 per cent.
“Do you think that percentage is something to write home about? Someone sits in his office and comes up with this and thinks people will clap for him?” Obonga stated.
The NECAN secretary questioned the implementation of the NMMP, stressing that the free meters provided under the programme should be accounted for.
“Were the Discos selling the meters under the NMMP to consumers? I advocated that they should wind down the Meter Asset Provider scheme before the National Mass Metering Programme because the fears I expressed then eventually came to pass.
“This is because when they collect money for meters under the MAP programme, they use NMMP meters to service the customers who paid for the MAP meters. That is what led to the MAP and NMMP metering programme harmonisation meeting which we held in Ikeja Lagos.
“So if you divide the 200,000 meters by the 11 distribution companies in Nigeria, how many meters will each get, and how many customers will benefit from such? That is the issue. Is there any seriousness in it?,” the NECAN official stated.
The government had explained on Friday that the N21bn would help in reducing commercial and collection losses to power distribution companies, enhancing the quality of service, and improving customer satisfaction.
“The funds accrued as of the April 2024 market settlement cycle and available for procurement of meters under the first tranche of the MAF scheme is in the sum of NGN21,864,851,725. The commission hereby approves the use of a sum of NGN21,000,000,000 apportioned pro rata to contribution by the Discos as Tranche A of the MAF scheme,” NERC had stated in the new order.
It said the fund was broken down and allocated 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 at no cost to the customers of the Discos,” the power sector regulator noted.
Meanwhile, when told that consumers said the N21bn would not provide more than 200,000 meters and asked to state the number of meters which the fund could provide, a senior official at NERC told our correspondent that the fund was for a start.
“It is a starting point. There are other schemes that have been in place to address this as well,” the Assistant General Manager, Government, External and Industry Relations, Michael Faloseyi, stated.
He added, “This scheme is to complement other schemes that have been in place. Whatever funds are available now is just the starting point. The funds would be accessed at intervals by the Discos to meter their customers as it builds up.
“All these are directed at bridging the wide metering gap and reducing estimated billing to the barest minimum.”
On concerns that Discos had been selling free meters, particularly those provided under the National Mass Metering Programme, the NERC official stated that such allegations should be backed with evidence.
He said any claim with evidence would be addressed by the power sector regulator, and urged concerned electricity consumers to come forward their complaints with justifiable evidence.
“If they have evidence they can provide it. We will not rely on speculations. Those who came forward, the commission has taken action on their concerns. We will not be relying on speculations.
“So if anybody has any verifiable evidence, they should submit it and the necessary regulatory action would be taken on it,” he stated.
Faloseyi added, “Anyone with evidence on any allegation on meter round-tripping should come forward with such. The commission is also doing its own monitoring, and any instance of misdemeanour will attract appropriate regulatory action or sanction.”
On estimated billing of power consumers, he described it as “a temporary or stop gap measure that would be reduced to the barest minimum with the application of the various metering schemes, including the National Mass Metering Programme.
“In the interim, notwithstanding, the commission is implementing the monthly tariff cap to protect unmetered customers.”