NERC approves N21 billion for DisCos to meter end-user customers at zero cost

The Nigerian Electricity Regulatory Commission (NERC) announced on Friday, June 21, the approval of N21 billion for the eleven electricity Distribution Companies (DisCos) to provide meters for end-use customers at zero cost.

This information was contained in ORDER NO: NERC/2024/072 on The Operationalization of “Tranche A” of the Presidential Metering Initiative Under the Framework of Meter Acquisition Fund.

NERC stated emphatically that the DisCos shall purchase and install the meters for customers under the MAF free of charge.

“The funds accrued as of the April 2024 market settlement cycle and available for procurement of meters under the first tranche of the MAF scheme is in the sum of NGN21,864,851,725.00.

“The Commission hereby approves the use of a sum of NGN21,000,000,000 apportioned pro rata to contribution by the DisCos as Tranche A of the MAF scheme.

“Attached to this Order as Schedule 1 is a breakdown of the funds available for each DisCo for the purchase of end-use customer meters.

“All the meters to be procured and installed under the MAF framework shall be at no cost to the customers of the DisCos,” said NERC.

More Insights

In addition, NERC said the deployment of funds will accelerate the deployment of meters and a closure of the current metering gap thereby reducing commercial & collection losses to DisCos, enhancing quality of service and improvement of customer satisfaction.

NERC said the DisCos will utilise the first tranche {“Tranche A”) of disbursement from the MAFScheme based on contributions made by DisCos as at the April 2024 market Settlement and attached to this Order as Schedule 1, to procure and install meters for unmetered Band ‘A’ customers within their franchise areas.

“It also noted that while the NESI is expected to leverage on the revenue stream under the MAF framework to raise substantial capital funding for metering.

“There is an imperative to accelerate closure of the metering gap for all customers currently classified under tariff Band A for the purpose of revenue protection and facilitating demand side management for the affected customers. 

“A transparent and competitive procurement process, for meter price determination, selection and engagement of MAPs/LMMAs for the metering of end-use customer meters under the MAF scheme,” NERC said.


Earlier, Nairametrics reported that the Minister of Power, Adebayo Adelabu, said the federal government will release a total of N20 billion to the power distribution companies (DisCos) for the procurement of meters for unmetered Band A customers in the next three months.

He said this will help fill the metering gap for Band A customers in customers.

Band A customers, as defined by the Nigerian Electricity Regulatory Commission (NERC), are electricity consumers who receive a minimum of 20 hours of electricity per day and are charged a premium tariff of N208 per kilowatt-hour (kWh).

Adelabu said these customers will be able to get the meter in the next three months.

“Before I left the office yesterday, I met with the chairman of NERC, Alhaji Garba Sanusi, and we’ve agreed that we have an accrued N20 billion for metering.

“I said to him, let us release this N20 billion for the DisCos to procure meters for the unmetered Band A customers before the end of September. That is going to happen. I can assure you that,” Adelabu said.



Leave a Comment