The Nigerian Electricity Regulatory Commission, (NERC) has approved the sum of N21,000,000,000 to DisCos to deploy meters to customers in 60 days.
This development by the Commission has been considered as a step towards bridging the metering gap in the Nigerian Electricity Supply Industry (NESI) which currently stands in excess of 7 million customers.
The fund approved by NERC was under the Meter Acquisition Fund, MAF, Scheme.
Recall that, the Nigerian Electricity Regulatory Commission developed the MAF Scheme primarily to address the challenge of DisCo creditworthiness inhibiting the deployment of end-use meter under NESI by creating a credible revenue stream, from the market funds on the account that long term financing may be secured by the utilities.
According to the Electricity Regulatory body of Nigeria, the fund for market settlement cycle was available for procurement of meters under the first tranche of the MAF scheme at April 2024, was 21,864, 851, 725. 00.
“The Commission hereby approves the use of a sum of twenty-one billion Naira as apportioned pro rata to contribution by the DisCos as Tranche A of the MAF scheme”
“In the first tranche allocation, Abuja Electricity Distribution Company (AEDC) was allocated N2,990, 745,647, Benin Electricity Distribution Company (BEDC) was allocated N1, 571, 276, 806, Eko Electricity Distribution Company (EKEDC) was allocated N2,921,896,285, Enugu Electricity Distribution Company (EEDC) was allocated N1,726,893,467 and Ibadan Electricity Distribution Company (IBEDC) was allocated N2,516, 469,752”.
The Commission also mentioned others as: Ikeja Electricity Distribution Company, IE with the sum of N4,358,122,421, Jos Electricity Distribution Company JEDC with the sum of N521, 905, 774, Kaduna Electricity Distribution Company, KAEDC N1,220, 367, 039, Kano Electricity Distribution Company KEDCO, N1,568,029, 563, Port Harcourt Electricity Distribution Company PHEDC, N1,360,944,608, and Yola Electricity Distribution Company, YEDC, N 243,348, 639.
NERC in an Order Number: NERC/2024/072 tagged: Operationalisation of “Tranche A” of the Presidential Metering Initiative under the framework of MAF issued in a press statement has stated that, all the meters to be procured and installed under the MAF framework shall be at no cost to the customers of the DisCos.
NERC also disclosed that the DisCos must ensure completion of Know-your-Customer (“KYC”) documentation and confirm the readiness of the premises for metering of all customer locations where MAF meters are to be deployed.
“the “DisCos shall utilise the first tranche (“Tranche A”) 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 I, 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/LMMAs, 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 on one of the following terms”
“Where an Advance Payment Guarantee (“APG”) issued by a commercial bank in Nigeria is provided by a qualifying MAP/LMMA, 30% OF the contract sum shall be paid by the FM on behalf of the DisCo to the MAP/LMMA upon execution of the contract. A further 2 milestone payments shall be made upon the completion of 60% of contracted quantities and 100% of the contract respectively, with the funds advanced against bank guarantee amortised over the payments”
“Where the MAP/LMMA do not request an advance payment, the milestone payments shall be made upon the verified installation of 20%, 60% and 100% respectively of the contracted volume of meters. A vendor may, at his option, defer payment until the completion of the installation of the contracted volumes” It stressed
It further stated that DisCos shall ensure that all the necessary resources and network clearance required by the MAP/LMMA to install meters based on installation plans are provided and/or completed.
“The installation of contracted volume meters shall be completed within 60 days from the date of approval of the process by the Commission, and all contracts For the supply and installation of meters shall be filed with the Commission”
“The parties under the MAF scheme shall exhibit the highest degree of public trust and ethical standard and shall not engage in any conduct that may constitute unfair practice or conflict of interest”, it added.
Olusola Akintonde
