Metering: NERC orders DisCos to conduct, complete customers’ enumeration March ending

THE Nigerian Electricity Regulatory Commission (NERC) has directed the electricity distribution company, (DisCos) to conduct and complete the enumeration of customers for meter in their various franchise area, by March 31st, 2019.

It said this would help improve access to meters and help the DisCos promptly attend to electricity issues.

The regulatory commission in a statement published on its website, also urged customers to co-operate with the DisCos during the exercise as this is in their best interest.

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In 2016, the DisCos conducted massive enumeration of unmetered customers with a view to supplying meters, thus phasing out the controversial estimated billings.

However, two years after, majority of enumerated customers are still without meters. This, the DisCos had blamed on lack of funds to procure meters for the increasing customer base.

The umbrella body of the 11 DisCos, Association of Nigerian Electricity Distributors(ANED) in November 2018, noted that the current identified approximately 4.1 million meter gap was a legacy of 62 years of government under-investment and the Power Holdings Company of Nigeria (PHCN) inefficiency.

According to the Director of Research and Advocacy, Barrister Sunday Oduntan, the N305 billion total capital expenditure(CAPEX) for the 11 DisCos for five years was no longer realistic considering the N299 billion required to address the gap.

The CAPEX covers for all metering, network expansion, rehabilitation and replacement of transformers, injection stations among others.

He further explained that the gap has continued to grow as DisCos continue to enumerate and identify their customers, replace non-functional and aged meters.

“The gap not only exceeds the 1.7 million metering obligation specified in the DisCos’ performance agreement, out of which the DisCos have delivered 88 percent of their metering obligation and the 2.7 million metering gap at the handover of the DisCos but exceeds the allowance for total capital expenditure-N305 billion for 11 DisCos , over five years.

Also, he blamed the inconsistencies on the tariff methodology saying; “In simple terms, the cost of comprehensive metering currently, simply dwarfs the ability of the current tariff to accommodate same. It means that the already artificially suppressed tariff cannot accommodate the cost without an increase,” he stated.

Prior to this, the Minister of Power, Works and Housing, Babatunde Fashola at the 18th monthly power sector and stakeholders meeting striped the DisCos off the monopoly of meter supply, throwing this open to potential investors.

Although he stressed that the DisCos have the obligation to meter all its consumers, the law does not vest a monopoly of meter supply on them.

According to him, meter supply is an open but regulated business adding that intending meter service providers are to apply for license from the Nigerian Electricity Regulatory Commission (NERC) to undertake it.

He further disclosed that the government will optimise the Electricity Power Sector Reforms Act EPSRA developing power sector regulation to democratise access to meters.

However, he maintained that the government would monitor and regulate to ensure that DisCos do not abdicate in their obligations of metering.

His words: ”Government has in the past attempted to intervene in metering supply through CAPMII which ultimately I decided that we should whine down because of the distrust it has caused between consumers and DisCos and government was caught in the middle.

“Some DisCos have come back to say that their customers still want to pay for meters and that they can reach an agreement with them on how to pay for it. The government will not come in the way of such agreement, it is in consistent with the power reforms act, it does not violate the Act.

“DisCos have the obligation to meter customers because they are the ones who charge for the electricity which must be measured so if you must collect money from anybody you must provide a measuring device.

“If the customers and DisCos reach agreements within themselves where the customers assume the responsibility of the DisCo so be it. However, the government may monitor and regulate to ensure that DisCos do not use this as an excuse to abdicate their responsibilities to provide meters.

“While it is true that DisCos have the obligation to meter customers, the law does not vest a monopoly of meter supply to the DisCos anybody who qualifies under the safety regulations by NEMSA and under the licenses issued by NERC can supply meters to customers under conditions stipulated by NERC.”

He added that: ”Meter supply is an open but regulated business, you need a license from NERC to undertake it, you need to apply, you need to comply with NERC’s guidelines to produce, import or install meters, it is not a monopoly of DisCos alone. NERC will issue regulations for meter service providers.”