The Nigeria Electricity Regulatory Commission (NERC) states that meter installation by electricity distribution companies declined by as much as 60.86% in the second quarter of 2024.
In its second quarter 2024 report published on its website on Thursday, the Nigerian Electricity Regulatory Commission (NERC) revealed a significant drop in meter installations.
According to NERC, only 49,188 meters were installed during the period, marking a 60.86% decline from the 125,664 meters installed in the first quarter.
The report further highlighted that 35,985 of the meters, accounting for 73.16% of the total, were installed under the Meter Asset Providers (MAP) framework.
The report noted that the Nigerian Electricity Regulatory Commission (NERC) expects Electricity Distribution Companies (DisCos) to utilize a mix of the five meter financing frameworks outlined in the 2021 Meter Asset Provider (MAP) and National Mass Metering Programme (NMMP).
The commission emphasized that these frameworks are designed to help DisCos close metering gaps, providing protection for customers against potential exploitation resulting from the absence of meters.
What you should know
The National Bureau of Statistics’ (NBS) Nigeria Electricity Report for the first quarter of 2024 reveals a 10% increase in customers on estimated billing, highlighting a growing metering gap.
- The report shows that the number of customers billed on estimates climbed from 5.83 million in Q4 2023 to 6.43 million in Q1 2024, marking a significant rise.
- The rise in estimated billing customers over the year is also noteworthy. Between Q1 2023 and Q1 2024, the number of estimated billing customers grew by 8%, increasing from 5.96 million.
- Earlier in 2024, the Nigerian Electricity Regulatory Commission (NERC) directed the 11 electricity distribution companies (DisCos) to allocate a total of N275 billion for meter procurement between 2024 and 2027.
- The current Minister of Power, Bayo Adelabu, estimates that the number of unmetered customers ranges between 7 to 8 million nationwide.
- However, a PwC report suggests that this figure could be as high as 38.91 million. The report indicates that roughly 50% of Nigeria’s installed meters are either outdated or malfunctioning, affecting around 1.7 million customers, with 4.09 million unmetered and 33.1 million potential customers still unconnected.
- Additionally, the World Bank has launched a $500 million metering program, with $155 million earmarked for providing meters to consumers and $345 million allocated to help DisCos improve electricity supply.
SOURCE: NAIRAMETRICS
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