Four DisCos exhaust meter allocations under NMMP Phase
•Stakeholders call for massive investment in metering
One of the major crises rocking the electricity sub-sector may remain for long due to inadequate metering of customers. Indeed, despite the two per cent change in the metering rate, the metering gaps have remained, resulting in about seven million unmetered customers.
According to the Nigerian Electricity Regulatory Commission (NERC) 2023 second quarter report, as of June 30th, 2023, there are 12,561,049 registered electricity customers with 44.16 per cent (5,546,483) of them metered leaving 55.84 per cent (7,014,566) of customers unmetered.
NERC said over the course of 2023/Q2, 178,864 end-user customers were metered, which increased the metering rate by 0.85pp relative to the 43.31 per cent recorded in 2023/Q1 with a two per cent change in metering rate by the DisCos.
While the meter crises remain defiant, the NERC said average available generation capacity of the 26 grid-connected power plants has dropped to 4,387.91MW (4.73per cent) compared to 4,605.72MW recorded in 2023/Q1.
NERC explained that the drop was due to gas constraints and mechanical faults affecting gas-fired thermal power plants, unscheduled maintenance, shutdown, total overhaul, depletion of dam reserves, and water management affecting hydro-dams.
The report stated that 16 out of the 26 grid connected power plants recorded a decrease in total generation in 2023/Q2 compared to 2023/Q1, resulting in a decrease of -5.17 per cent (-483.19GWh) from 9,350.24GWh generated in 2023/Q1.
NERC further reported that the average hourly generation of available units decreased by 6.33 per cent (- 274.47MWh/h) from 4,334.41MWh/h in 2023/Q1 to 4,059.94MWh/h.
On the metering issue, the electricity regulator further disclosed that Ikeja, Ibadan, Abuja and Enugu DisCos had the highest number of meter installationsin 2023/Q2 accounting for 72.69 per cent of total installations.
“Relative to 2023/Q1, eight DisCos recorded improvements in the number of meter installations with Benin (+28.40 per cent), Kano (+25.99 per cent), and Eko (+15.85 per cnet) recording the greatest improvements. Conversely, Yola (-24.55 per cent), Kaduna (-6.27 per cent), and Enugu (-2.83 per cent) recorded a decline in the number of meters installed compared to 2023/Q1.”
NERC report further stated that out of the 178,864 end-use customers metered in 2023/Q2, 94.15 per cent customers were metered under the Meter Asset Provider (MAP) framework, 5.20 per cent were metered under the National Mass Metering Programme (NMMP) framework, 0.64 per cent under the Vendor Financed, and 0.01per cent under the DisCo Financed framework.
On the metering progress under NMMP, MAP, Vendor and DisCo finance, the report stated that under MAP framework, a total of 168,397 meters were installed in 2023/Q2 representing a 5.92 per cent increase compared to the 158,992 MAP meter installations recorded in 2023/Q1 as Ikeja DisCo recorded the highest number of installations (47,080) representing 27.96 per cent of the total number of customers metered under the framework during the quarter, noting that Yola DisCo did not record any installation under the framework in 2023/Q2.
The report revealed that Abuja, Ibadan, Ikeja, and Port Harcourt DisCos have exhausted their meter allocations under the NMMP Phase 0. It further stated that there was no change in the number of meter installations by Benin, Enugu, and Kano DisCos while Eko, Ibadan, Jos, Kaduna and Yola DisCos reported a decrease in customer metering under the NMMP in 2023/Q2 compared to 2023/Q1, noting that the decrease was due to the winding down of NMMP Phase 0.
HOWEVER, stakeholders in the industry emphasised that the two per cent change in the metering rate barely scratches the surface of the country’s metering needs.
Executive Director, PowerUp Nigeria, Adetayo Adegbemle, in a chat with The Guardian said the number of unmetered customers would continue to increase.
He pointed out that to close the gap, sustainable policy has to evolve and a continued maintenance of the required level of installations.
“Funds and unsustained policy are the bane of metering in Nigeria. The MAP Regulation has not been able to bridge the gap, hence, we need to evolve an infrastructure investment fund and seek out investors that are able to provide the massive funds for metering,” he said.
On his part, Lawyer and Executive Coordinator, NEPA WAHALA NG, power sector consumer awareness and protection initiative, Emeka Ojoko, said the two per cent change is abysmal as no penalties were built into the MAPR 2018 to motivate DisCos in keeping to the timeline.
He added that the reasons for the low increment are not too implausible as the takeoff of the second phase of NMMP has been unduly delayed.
“The DisCos are unable to keep to the timelines for meter installation after customers have paid for them, World Bank loan for meter procurement and installation has been delayed due to well-founded objections by local manufacturers about the structure of the bidding process, hence, combination of these factors is responsible for the current situation,” he said.