Inadequate customer metering could prolong one of the primary problems roiling the electricity subsector. In fact, the metering gaps have persisted despite the 2% reduction in the metering rate, leaving almost seven million customers without meters.
As of June 30, 2023, there were 12,561,049 registered power consumers. Of them, 44.16 percent (5,546,483) were metered, leaving 55.84 percent (7,014,566) unmetered, according to the Nigerian power Regulatory Commission’s (NERC) 2023 second quarter report.
NERC reports that 178,864 end-user customers were metered in 2023/Q2, increasing the metering rate by 0.85 percent compared to 43.31 percent in 2023/Q1 with a two percent shift in the DisCos’ metering rates.
The average available generation capacity of the 26 grid-connected power plants has decreased to 4,387.91MW (4.73percent) from 4,605.72MW recorded in 2023/Q1, according to the NERC, despite the persisting meter crisis.
According to NERC, the decline was caused by water management impacting hydro-dams, unscheduled maintenance, closure, complete overhaul, and mechanical problems affecting gas-fired thermal power facilities.
According to the report, the total generation in 2023/Q2 decreased in 16 out of the 26 grid-connected power plants as compared to 2023/Q1. This led to a decline of -5.17 percent (-483.19 GWh) from the 9,350.24 GWh generated in 2023/Q1.
Additionally, according to NERC, the average hourly generation of available units dropped from 4,334.41MWh/h in 2023/Q1 to 4,059.94MWh/h, a 6.33 percent fall (- 274.47MWh/h).
Regarding the metering issue, the electrical regulator also revealed that the DisCos in Ikeja, Ibadan, Abuja, and Enugu had the most number of meters installed in 2023/Q2, making up 72.69% of all installations.
Eight DisCos saw increases in the number of meter installations compared to 2023/Q1, with Benin (+28.40%), Kano (+25.99%), and Eko (+15.85 per cnet) showing the biggest increases. On the other hand, Yola (-24.55%), Kaduna (-6.27%), and Enugu (-2.83%) reported lower numbers of installed meters in comparison to 2023/Q1.
Within the 178,864 end-use customers metered in 2023/Q2, the NERC report went on to say that 94.15% of these customers were metered under the Meter Asset Provider (MAP) framework, 5.20% under the National Mass Metering Programme (NMMP) framework, 0.64% under the Vendor Financed framework, and 0.01% under the DisCo Financed framework.
Regarding metering progress under NMMP, MAP, Vendor, and DisCo finance, the report noted that, under the MAP framework, 168,397 meters were installed in 2023/Q2, indicating a 5.92 percent increase over the 158,992 MAP meter installations recorded in 2023/Q1. Ikeja DisCo recorded the highest number of installations (47,080), accounting for 27.96 percent of all customers metered under the framework during the quarter. Yola DisCo, on the other hand, did not record any installations under the framework in 2023/Q2.
According to the report, the distribution companies in Abuja, Ibadan, Ikeja, and Port Harcourt have used up all of their meter allotment under the NMMP Phase 0. It also said that while Eko, Ibadan, Jos, Kaduna, and Yola DisCos reported a decrease in customer metering under the NMMP in 2023/Q2 compared to 2023/Q1, they attributed the decrease to the winding down of NMMP Phase 0. Benin, Enugu, and Kano DisCos reported no change in the number of meters installed.
Notwithstanding, industry participants underscored that the two percent variation in the metering rate just touches the tip of the iceberg regarding the nation’s metering requirements.
In an interview with The Guardian, Adetayo Adegbemle, Executive Director of PowerUp Nigeria, predicted that the number of unmetered users would keep rising.
He made the point that in order to close the gap, sustainable policies must change and the necessary number of installations must be maintained over time.
In Nigeria, funds and a lackluster policy are the main problems with metering. We need to develop an infrastructure investment fund and look for investors who can contribute the significant sums for metering because the MAP Regulation has not been able to close the gap,” he stated.
Emeka Ojoko, a lawyer and the executive coordinator of NEPA WAHALA NG, a power sector consumer awareness and protection project, said that the two percent change is insignificant because the MAPR 2018 does not include any sanctions to encourage DisCos to adhere to the deadline.
He continued by saying that given the excessive delay in the second phase of the NMMP’s implementation, the reasons for the low increment are not entirely impossible.
“A combination of these factors is responsible for the current situation,” he said. “The DisCos are unable to keep to the timelines for meter installation after customers have paid for them. The World Bank loan for meter procurement and installation has been delayed due to well-founded objections by local manufacturers about the structure of the bidding process.”
