NERC, Presidency Harp on Closing Metering Gap to Boost Electricity Supply

*Commission anticipates sustainable, zero subsidy electricity market regime

Peter Uzoho

The Nigerian Electricity Regulatory Commission (NERC) and the Office of the Special Adviser to the President on Power have stressed the imperative of having all electricity customers metered as a veritable way of attaining liquidity and sustainability in the Nigerian Electricity Supply Industry (NESI).
Similarly, the power sector regulator said it was looking forward to having a buoyant electricity industry characterised by payment sustainability and zero subsidy regime.

The two federal institutions stated these in Lagos at the recently held first quarterly meeting of the NESI stakeholders for 2024, which was convened and presided over by NERC.
The meeting was attended by investors and owners of power firms, relevant government agencies and consultants including the distribution companies (Discos), generation companies (Gencos), Transmission Company of Nigeria (TCN), Nigeria Bulk Electricity Trading Company (NBET), meter asset manufacturers (MAPs) as well as representatives of the Minister of Power and that of the Special Adviser to the President on Energy.

Speaking at the meeting, NERC Chairman, Mr. Sanusi Garba, provided an overview of strategic direction for the power industry for the year 2024.
He specifically told the participating stakeholders that the meeting was expected to provide strategic direction for the NESI, review compliance since the last meeting, and give licensees a platform to discuss issues.

Explaining the key role of metering in addressing some of the challenges in NESI, Garba stated, “Metering is an issue. Without metering, the issue of liquidity will not be resolved. Customers want to pay for what they consume. It is the single most prevalent complaint of customers.
“We cannot overlook the value of metering in the value chain, and we will continue to focus on how to close the gap because customers do not want to pay on the basis of estimated bills.”

Corroborating the NERC chairman, the Commissioner for Finance and Management Services, NERC, Mr. Nathan Rogers, warned Discos not to cajole customers into paying for meters when they don’t have meters in stock.
“If you collect customers’ money, then you have to install meters for them at no additional cost regardless of when you install it. You must meter customers at the price it was when they initially paid.  You can’t charge them more,” Rogers warned.
Team Lead (Power), Office of the Special Adviser to the President on Energy, Eriye Onagoruwa, pointed out that “There is a huge metering gap that needs to be bridged.”

He maintained that “The Presidential Metering Initiative (PMI) is looking at bulk procurement of smart meters, developing homegrown systems of MDMS, reduction of ATC&C losses to globally accepted standards and stakeholders engagement to identify challenges facing the sector while carrying metering manufacturers along without compromising on cost, quality and delivery.”
Also commenting, NERC Commissioner in charge of Legal, Licensing and Compliance, Dafe Akpeneye, said the commission expects Discos to to meter paid customers within 10 days.

He said, “Currently, there is a communication gap with customers. Once they pay, you need to communicate with them and give them an installation date. Instead, the customer pays, hears nothing, and continues to wait in perpetuity.”

Speaking on the operationalisation of the ministries, departments and agencies (MDAs) Centralised Billing Platform, NERC Vice Chairman, Musiliu Oseni, explained that “A payment system was put out in place for critical MDAs, with an agreement for the central settlement of their electricity consumption by the Ministry of Finance, which would have access to their meter readings.”

Urging Discos to improve their performance or suffer consequences, Oseni added, “NERC will look at performance on a case by case basis. Sanctions and actions will not be the same. Ensure that you improve your efficiency. If your efficiency is at the level expected, you will get your full OPEX. If you don’t perform, you will only get 50 per cent of your admin OPEX.

“We need to ensure that sustainable payment going forward is in place, market rules are clear, but they don’t envisage there would be tariff shortfall or subsidy.”

On his part, NERC Commissioner for Engineering, Performance and Monitoring, Chidi Ike, said the commission was planning to organise a comprehensive workshop for licensees to examine their responsibilities.

He said the workshop would cover the legal framework, grid code, Health, Safety and Environment (HSE), and other relevant areas in the NESI.

“There will be sanctions for non-compliance. You see swathes of communities under transmission lines. Discos supply power to them despite being in clear contravention of the Right of Way of TCN. We are going to focus on those areas and make sure that Discos aren’t going to benefit from any form of illegality,” Ike added.

However, highlighting the leading cause of accidents during his presentation on the Health and Safety Performance of the NESI in 2022 and 2023, NERC Assistant General Manager, Engineering, Performance and Monitoring, Mr. John Joseph, said, “38 per cent of accidents in 2023 was caused by unsafe conditions. There are safety guidelines that should be followed but are jettisoned instead, leading to accidents.”