The Nigerian Electricity Regulatory Commission (NERC) has said that Abuja, Ikeja, Enugu and Ibadan had the highest number of meter installations in the second quarter of 2023.
The Commission stated this in its Q2/2023 Electricity on Demand report released earlier this week.
According to the NERC report, Ikeja, Ibadan, Abuja, and Enugu Distribution Companies (DisCos) led the way in meter installations during the second quarter of 2023, accounting for 72.69% of the total installations. Eight DisCos reported improvements in the number of meter installations.
This marked significant progress compared to Q1/2023 (first quarter), when Benin (+28.40%), Kano (+25.99%), and Eko (+15.85%) made the most gains, and Yola (-24.55%), Kaduna (-6.27%), and Enugu (-2.83%) witnessed a decline in meter installations.
More Insights
The NERC report noted that as of June 30, 2023, there were a total of 12,561,049 registered electricity customers in the system, out of which 44.16% (5,546,483) had functioning meters.
During the second quarter of 2023, 178,864 additional end-user customers received meters, increasing the overall metering rate by 0.85% compared to the previous quarter’s rate of 43.31%.
Out of the 178,864 end-use customers metered in the second quarter of 2023, the majority, 94.15%, received meters under the Meter Asset Provider (MAP) framework, while 5.20% were metered under the National Mass Metering Program (NMMP). Only 0.64% were metered under the Vendor Financed framework, and 0.01% under the DisCo Financed framework.
Under the MAP framework, a total of 168,397 meters were installed in Q2/2023 (second quarter of 2023), marking a 5.92% increase compared to the first quarter. Ikeja DisCo led the way in MAP installations.
During the same period, 9,302 customers were metered under the NMMP framework, reflecting a decrease of -32.00% from the first quarter. Notably, some DisCos had exhausted their meter allocations under the NMMP Phase 0, and this phase saw reduced customer metering for several DisCos.
Also, 1,143 customers received meters under the Vendor Financed framework in the second quarter, primarily by Abuja and Benin DisCos. The number of installations under this framework decreased compared to the first quarter.
Additionally, Kaduna DisCo was the only one that continued customer metering under the DisCo Financed framework.
Diverse approaches to meter financing
It is important to understand the diverse financing approaches for metering in the country;
Meter Asset Provider (MAP): Under this framework, third-party investors provide and maintain end-user meters as a service. Customers benefiting from these meters pay a Metering Service Charge (MSC) to cover the cost of the metering service. The goal is to ensure reliable metering for consumers without upfront costs.
National Mass Metering Programme (NMMP): This policy intervention, supported by the Central Bank of Nigeria (CBN), facilitates the provision of long-term, single-digit interest loans to Distribution Companies (DisCos). These loans are specifically for the acquisition of locally manufactured/assembled meters, benefiting customers by expanding meter availability.
Vendor Finance: Vendor Finance entails an agreement between a DisCo and a Local Meter Manufacturer/Assembler (LMMA) or Meter Asset Provider (MAP). It operates on a deferred payment basis, ensuring that the base cost of meters stays within regulated prices approved by the Commission, making metering more affordable for consumers.
Self-funded by DisCos: In this approach, DisCos independently procure meters from sources outside the MAP and NMMP frameworks. Costs related to meters, accessories, installation, and warranties must adhere to regulated pricing set by the Commission. Supply terms should also align with existing MAP and NMMP contracts.
Other External Efficient Meter Financing: The Commission has endorsed alternative external meter financing methods that are efficient, cost-effective, and consistent with the terms of existing MAP and NMMP contracts. This allows flexibility in acquiring meters to meet customer needs.
