Connect with us
iubh
Advertisement
Alpha
Advertisement
Hotflex
Advertisement
british airways
Advertisement
Advertisement
UBA
Advertisement
Patricia
Advertisement
app

Energy

NERC issues order to DisCos on replacement of faulty, obsolete meters

NERC has issued a directive to DisCos on the structured replacement of faulty and obsolete meters for their customers.

Published

on

Electricity, Buhari moves against Discos and agents that collect money for prepaid meters

The Nigerian Electricity Regulatory Commission (NERC) has issued a directive to the electricity distribution companies (DisCos) on the structured replacement of faulty and obsolete meters for their customers with effect from March 4, 2021.

This is to remove the bottlenecks that had previously impeded the rapid deployment of meters to unmetered customers and the receipt of complaints from metered customers in fourth-quarter 2020, that they had been served meter replacement notices by DisCos when all stakeholders were preparing for the National Mass Metering Programme (NMMP).

The directive from NERC is contained in Order No. NERC/246/2021, Titled, “In the matter of the order on structured replacement of faulty and obsolete end-user customer meter in Nigerian Electricity Supply Industry (NESI),” issued on March 4, 2021.

The commission noted that over 7 million customers are currently unmetered as indicated by the customer enumeration data. It also estimates that an additional 3 million meters are currently obsolete and due for replacement.

NERC pointed out that the existence of unmetered customers contributes to the threat affecting the financial viability of the NESI as unmetered customers expressed their displeasure with the estimated billing methodology.

The statement from NERC partly reads, “The Commission notes that over 7 million customers are currently unmetered as indicated by customer enumeration data. It is also estimated that an additional 3 million meters are currently obsolete and due for replacement.

“The existence of a large population of unmetered customers contributed to threats affecting the financial viability of NESI as unmetered end-use customers expressed deep dissatisfaction with the estimated billing methodology.

“The revenue assurance objectives of DisCos have also been challenged by being unable to properly account for the utilisation of electricity by end-use customers”.

Hotflex
Sigma Pensions

Following the review from both the metered and unmetered customers, NERC issued the following order;

  1. DisCos shall grant priority to the metering of unmetered customers under the National Mass Metering Program.
  2. DisCos may replace faulty/obsolete meters under the National Mass Metering Program but these replacements must be done in strict compliance with the Metering Code and other regulatory instruments of the Commission.
  3. DisCos shall inspect meters of metered end-use customers and the replacement notice shall contain the following –
  • The date of the inspection
  • Name, designation and signature of the officer that inspected the meter.
  • The fault identified in the meter.
  • The date for the installation of the replacement meter
  1. The Commission shall be copied on all replacement notices issued to end-use customers for the purpose of conducting random reviews of the replacement
  2. New meters must be installed upon the removal of the faulty/obsolete meter and under no circumstances shall the customer be placed on estimated billing on account of the DisCo’s failure to install a replacement meter after the removal of the faulty/obsolete meter.
  3. The customer and DisCo representative shall jointly note the units on the meter being replaced and the customer must be credited with these units within 48 hours after the installation of the meter.
  4. Customers shall only be billed for loss of revenue where the DisCo establishes meter tampering, by-pass or unauthorised access as contained in NERC Order/REG/ 41/2017 on Unauthorised Access, Meter Tampering and Bypass.
  5. Activation tokens shall be issued to customers immediately after replacement of the faulty/obsolete meter.
  6. DisCos shall file monthly returns with the Commission on the replacement of faulty/obsolete meters along with their proposal for the decommissioned meters.

This Order may be cited as the Order on the Structured Replacement of Faulty/Obsolete Meters of End-Use Customers.”

What you should know

  • NERC was mandated in the Electricity Power Sector Reform Act to maximize access to electricity services, by promoting and facilitating customer connections to distribution systems in both rural and urban areas and establish appropriate consumer rights and obligations regarding the provision and use of electricity services.
  • Meters serve as a revenue assurance tool for NESI service providers and a resource management tool for consumers that receive services with the Meter Asset Provider (MAP) Regulations coming into force on April 3, 2018.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

3 Comments

3 Comments

    Leave a Reply

    Your email address will not be published.

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Business News

    FG reacts to reports of revoking 32 refinery licenses

    The FG has denied revoking 32 refinery licenses that were issued to some private companies across the country.

    Published

    on

    Edo Refinery and Petrochemicals Limited's operations to kick-start

    The Federal Government has denied revoking 32 refinery licenses that were issued to some private companies across the country.

    The reaction follows reports making the rounds in some section of the media that the government has revoked some refinery licenses that it had earlier issued within a period of 3 years.

    This clarification is contained in a statement issued by the Head, Public Affairs of the Department of Petroleum Resources (DPR), on behalf of the agency on Tuesday, April 13, 2021, in Lagos.

    The DPR said that the refinery licenses have validity periods for the investors to achieve certain milestones and would become inactive after its expiration until the company reapplies.

    READ: Nigeria’s debt sentence: The burden of the Port Harcourt refinery

    What DPR is saying

    The DPR in its statement said, “We wish to clarify that DPR did not revoke any refinery licence. Refinery licenses, like our other regulatory instruments, have validity periods for investors to attain certain milestones.

    This implies that after the validity period for the particular milestone, the licence becomes inactive until the company reapplies for revalidation to migrate to another milestone. This does not in any way translate to revocation of the licence of the company.”

    READ: FG explains why it revoked 4 Addax Petroleum Oil Mining Licenses

    Sigma Pensions

    The DPR, in line with the aspirations of the government, initiated the refinery revolution programme of the country to boost local refining capacity by enabling business and creating new opportunities for new investors with the granting of modular and conventional refinery licenses to investors.

    He emphasized that the regulatory agency would continue to support investors in the oil and gas industry in Nigeria using its regulatory instruments such as licences, permits and approvals to stimulate the economy and align with the government’s job creation initiatives.

    READ: FG to extend fuel subsidy for 6 months

    In case you missed it

    Earlier on, some media reports suggested that the DPR had revoked refinery licenses that were issued to some companies for being inactive beyond the validity period. These refineries include modular refineries and conventional plants.

    Stanbic 728 x 90
    Continue Reading

    Business News

    FG to extend fuel subsidy for 6 months

    Reports indicate that the FG plans to spend N720 billion for the next 6 months on Premium Motor Spirit (PMS) subsidies.

    Published

    on

    Subsidy and PIB, petrol price, PPPRA, We have sufficient PMS stock for 38 days- DPR 

    The Nigerian Government may have suspended plans to end its subsidy payments as reports indicate that the FG plans to spend N720 billion for the next 6 months on Premium Motor Spirit (PMS) subsidies.

    This was disclosed in an exclusive report by The Guardian on Sunday, citing that President Muhammadu Buhari ordered that the subsidies remain in place for the next 6 months.

    “Specifically, President Buhari has asked the Nigeria National Petroleum Corporation (NNPC) to suspend any idea on subsidy removal for five to six months so that a plan that does not harm ordinary Nigerians is evolved if the deregulation must go on,” a Government official said.

    READ: FG to meet with State Governors over electricity, fuel prices

    What you should know 

    • NNPC GMD, Mele Kyari disclosed last month that the “NNPC may no longer be in a position to carry that burden because we cannot continue to carry it in our books,” after reports of fuel imports under-recovery revealed the FG was spending N120 billion a month on subsidy.
    • Kyari also hinted that they may soon start selling PMS at market prices saying: “NNPC importing PMS at market price and selling at N162/L. The actual market price should be between N211 and N234/L. Meaning is that consumers are not paying the market price.
    • “NNPC is currently the sole importer of PMS, and we’re trying to exit the underpriced sale of PMS. Eventual exit is inevitable, when it will happen I cannot say, but engagements are ongoing because the government is cognisant of the implications.”

    Continue Reading

      





    Nairametrics | Company Earnings

    Access our Live Feed portal for the latest company earnings as they drop.