Abuja: The Nigerian Electricity Regulation Commission (NERC) has announced the approval of N28 billion for the procurement of meters to serve all outstanding unmetered Band A customers, ensuring the provision comes at no cost to them. This initiative is part of the Order on the Operationalisation of ‘Tranche B’ of the Meter Acquisition Fund (MAF), which was issued by NERC and endorsed by its Vice Chairman, Musiliu Oseni, and Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye.
According to News Agency of Nigeria, the funds allocated under Tranche B of the MAF scheme are not only aimed at addressing the needs of unmetered Band A customers but also focus on closing the metering gap for customers classified under Tariff Band B. The disbursement of the N28 billion will be proportionate to the contributions of the respective Electricity Distribution Companies (DisCos). The meters procured under this framework will be installed at no cost to the customers.
The commission emphasized that the order is designed to provide a clear and transparent framework for implementing Tranche B of the MAF scheme. It also defines the eligibility requirements and obligations of DisCos and Meter Assert Providers (MAP) in accessing and utilizing the funds. The terms of financing, repayment, and fund utilization are clearly prescribed within the scheme. Additionally, monitoring, reporting, and evaluation requirements are set to ensure accountability, efficiency, and transparency in deploying the MAF-funded meters, alongside operational guidelines for participating entities to maintain the integrity of the scheme.
NERC provided a breakdown of funds released under the MAF. In April 2024, from an accrued sum of N21,864,851,725, NERC released N21 billion to the DisCos for meter procurement under Tranche A. The current release of N28 billion marks the latest under Tranche B of the MAF scheme. The order highlights the expectation for NESI to mobilize significant capital investments for metering through the revenue streams created under the MAF framework, emphasizing the need to close the metering gap for all customers under Tariff Band A for better revenue protection and demand-side management.