MAP/NMMP: 7.3m Unmetered electricity consumers a challenge in power ecosystem ─NERC

*The Nigerian Electricity Regulatory Commission reports electricity Distribution Companies’ responsibility of metering power consumers has remained a serious challenge with 7.3 million outstanding unmetered customers as of December 2023

Isola Moses | ConsumerConnect

The Nigerian electricity Distribution Companies’ (DisCos) responsibility of metering power consumers across the country has remained a challenge with the number of unmetered customers hitting 7.3 million.

ConsumerConnect reports the Nigerian Electricity Regulatory Commission (NERC), in its latest annual report, disclosed out of over 13.16 million registered customers, the DisCos had metered only 672,539 customers thus far.

The information is contained in power sector regulatory Commission’s 2023 Annual Report released Monday, September 23, 2024, in Abuja, FCT.

Consequently, the DisCos’ slow-paced metering efforts are said to have left an increasing number of electricity consumers still relying on the controversial estimated billing system in Nigeria.

The Sanusi Garba-led NERC stated as of December 31, 2023, only 5,842,726 (44.39%) of the registered 13,162,572 customers in the Nigerian Electricity Supply Industry were metered.

The report also indicated that DisCos installed 672,539 end-use customer meters in the past year.

Besides, the Commission reported that the DisCos installed a total of 25,847 meters under the National Mass Metering Programme (NMMP) framework while 585,265 meters were installed under the Meter Asset Provider (MAP) framework.

Furthermore, the electricity providers installed 6,912 meters through the Vendor Finance Metering framework, while 53 end-use customer meters were installed through the DisCo Financed framework.

Following the development in the metering efforts, industry experts have raised concerns that the slow pace of metering could worsen billing disputes and customer dissatisfaction in the country, according to report.

On electricity subsidy payments

The NERC report showed that electricity subsidy dropped to N151.30 billion during the last fiscal year, indicating a 17.7 percent decline from 2022.

“A Minimum Remittance Obligation (MRO) adjusted invoice of N858.03 billion was issued by Nigerian Bulk Electricity Trading plc (NBET) and Market Operator (MO) for energy costs and administrative services to DisCos in 2023.

“The DisCos remitted a total of N706.73 billion, resulting in a deficit of N151.30 billion during the year.

“Based on the above, the gross DisCo remittance rate to the upstream segment for 2023 was 82.37 percent,” said the regulator.

The Federal Government would pay about N180.8 billion in electricity subsidies to power consumers on Bands ‘B’ to ‘E’ categories, whose tariffs have remained frozen since December 2022, according to report.

In regard to subsidy payments, NERC has approved N26.4 billion for Abuja consumers, N23.76 billion for Ikeja DisCo, N22.21 billion for Ibadan DisCo, N19.92 billion for Eko Disco, and N14.87 billion for Benin DisCo in September 2024, noted the report.

As regards the September subsidy cycle, Enugu Distribution Company (DisCo), the report showed, would receive N14.61 billion, while Port Harcourt DisCo would be allocated N13.45 billion. Kaduna DisCo would benefit from N13.14 billion, Kano DisCo would receive N12.96 billion, and Jos DisCo is entitled to receive N11.68 billion as subsidy.

Yola DisCo is slated to get N8.06 billion in this round of disbursements.

The Commission further stated: “In line with the policy direction of the Federal Government on electricity subsidy, the allowed tariffs for Bands B-E customer categories shall remain frozen at the rates payable since December 2022 subject to further policy direction by the government.”

NERC equally imposed fines, totalling N8.3 billion on the country’s 11 DisCos for overcharging customers in their various networks.

The report noted the Commission directed the DisCos to compensate affected electricity consumers for the improper billing in the power ecosystem.

These developments were outlined in the September 2024 Supplementary Order of the Multi-Year Tariff Order (MYTO) of 2024.

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