DisCos receive N21bn to meter customers in 60 days
….at no cost to customers
The Nigerian Electricity Regulatory Commission (NERC) has released N21 billion to electricity distribution companies (DisCos) to make meters available for customers in 60 days.
The metering will be at no cost to customers, the NERC said.
Nigeria currently has in excess of seven million umetered customers
In the first tranche allocation, Abuja Electricity Distribution Company (AEDC) got N2,990,745,647; Benin Electricity Distribution Company (BEDC), N1,571,276, 806; Eko Electricity Distribution Company (EKEDC), N2,921,896,285; Enugu Electricity Distribution Company (EEOC), N1,726,893,467; and Ibadan Electricity Distribution Company (IBEDC), N2,516,469,752.
Other are Ikeja Electricity Distribution Company (IE), N4,358,122,421; Jos Electricity Distribution Company (JEDC), N521,905,774; Kaduna Electric (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), N243,348, 639.
In a circular NERC/2024/072 and titled “Operationalisation of “Tranche A” of the Presidential Metering Initiative,” the commission 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.
It added that the distribution companies must ensure completion of Know Your Customer (KYC) documentation and also confirm the readiness of the premises for metering of all customer locations.
“The DisCos shall utilise the first tranche 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,” NERS stated.
“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 percent 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 (two) 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 does 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.
“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.”
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