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The Nigerian Electricity Reliability Commission (NERC) has approved ₦21 billion ($13.7 million) for electricity distribution companies (DISCOMs) to provide meters to electricity customers.
NERC cites the inability of DISCOMs in the country to raise financing in the form of debt or additional equity as a 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 NERC, primarily to address the challenge of DISCOM creditworthiness preventing the deployment of meters in the Nigerian Electricity Supply Industry by creating a credible revenue stream from market funds.
The approved ₦21 billion falls under tranche A of the MAF, which aims to accelerate the deployment of meters, close the current metering gap of seven million customers, reduce commercial and collection losses to DISCOMs, enhance quality of service and improve customer satisfaction.
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Under the MAF, funds will be allocated as follows:
- For Abuja Electricity Distribution Company (AEDC), ₦2.99 billion ($1.95 million)
- For Benin Electricity Distribution Company (BEDC), ₦1.57 billion ($1.03 million)
- For Eko Electricity Distribution Company (EKEDC), ₦2.92 billion ($1.91 million)
- For Enugu Electricity Distribution Company (EEDC), ₦1.73 billion ($1.13 million)
- For Ibadan Electricity Distribution Company (IBEDC), ₦2.52 billion ($1.64 million)
- For Ikeja Electricity Distribution Company (IE), ₦4.36 billion ($2.85 million)
- For Jos Electricity Distribution Company (JEDC), ₦521.91 million ($340,917)
- For Kaduna Electricity Distribution Company (KAEDC), ₦1.22 billion ($797,162)
- For Kano Electricity Distribution Company (KEDCO), ₦1.57 billion ($1.02 million)
- For Port Harcourt Electricity Distribution Company (PHEDC), ₦1.36 billion ($888,989)
- For Yola Electricity Distribution Company (YEDC), ₦243.35 million ($158,959)
NERC’s order for the funds became effective on 13 June. The funds shall be under the management of a fund manager, based on terms and conditions negotiated by the DISCOMs and approved by the Commission.
The MAF forms one of the revenue streams for the repayment of the long-tenor financing for metering under the federal government’s Presidential Metering Initiative, which aims to close the metering gap within three years by using smart meter technology for data analytics.
