Metering Asset Provider Regulation designed to drive mass metering, especially for residential electricity consumption, is set to start within the first three months of 2019 as request for tenders from NERC-approved MAP contractors enters its final stages.
Consumer complaints data published by the Nigerian Electricity Regulatory Commission (NERC) for the second quarter of 2018 indicates that metering and estimated billing were among the most significant concerns of consumers. Metering and estimated billing dominated customer complaints, accounting for 68 percent, that is, 103,636, of the total complaints.
The total number of electricity consumers with prepaid meters increased by 2.26 percent to 1.50 million in the third of quarter of 2018 in comparison to 1.62 million customers in the preceding quarter, according to the National Bureau of Statistics (NBS). However, players in the meter industry have said that the rate of distribution by the electricity distribution companies (DisCos) is still low to bridge the close to 7 million metering gap in Nigeria.
“The request for proposal (RFP) by NERC from MAP approved contractors entered its final selection stages in December 2018. We expect to see some prepaid meter supply contracts with Discos signed in January 2019,” Chantelle Abdul, managing director of Lagos-based Mojec International Limited, an indigenous prepaid meter manufacturer and MAP-approved contractor, told BusinessDay in a phone interview.
“The MAP programme has not commenced but will.”
According to the NBS, Abuja Disco had the highest number of customers metered, overtaking Benin Disco, which previously held the title. These Discos are closely followed by Ibadan Disco, but Yola Disco had the least number of customers within the period under review.
NERC obligated the Discos by virtue of their performance contracts to provide meters for customers. However, they were constrained by foreign exchange challenges which sent the price of meters through the roof.
They further said they were handicapped by poor collection rates and low tariff due to refusal of the government to allow them raise electricity tariff.
“I think people are taking advantage of the Meter Asset Provider regulation. When you visit NERC’s website you will find companies, both indigenous and non-indigenous, who have been approved by the Commission to supply prepaid meters,” Pedro Omontuemhen, partner, PricewaterhouseCoopers Nigeria, told BusinessDay.
The prepaid metering system provides an effective mechanism for measuring electricity supplied in the country as the device makes it possible to accurately measure power consumption.
This is why NERC conceived the Meter Asset Provider (MAP) regulation that allows for third-party investment in electricity metering which consumers would offset after an agreed period based on installments.
“A measure of how successful the regulation has been will be how many meters have been provided and how many Discos have entered into agreements with contractors for this purpose,” Omontuemhen added.
NERC in March 2018 issued a deadline of August 1, 2018 to the 11 Discos to engage the services of MAP, stressing that the move is aimed at achieving the three-year target prescribed by the commission.
The commission had earlier announced the introduction of the MAP Regulation, which it said would become effective on April 3, 2018, emphasising that the policy thrust was meant to ensure that electricity customers only pay what they actually consume.
STEPHEN ONYEKWELU
