NERC releases electricity meter regulation

The Nigerian Electricity Regulatory Commission (NERC) has recently released a new electricity meter regulation that is set to revolutionize the way consumers are billed for electricity in Nigeria. The regulation allows for private investors to procure electricity billing meters in partnership with the Distribution Companies (Discos), paving the way for a more efficient and transparent metering system across the country. The new regulation introduces Meter Service Providers (MSPs), which are third parties that will enter into agreements with the Discos to provide meters to customers. These meters will remain the property of the MSPs until they are fully paid for, giving consumers the opportunity to gradually deduct the cost from their electricity bills over time. This initiative aims to bridge the metering gap over a ten-year period and alleviate the financial burden on Discos. In a recent interview with CNBC Africa, George Etomi, the Director of Eko Electricity Distribution Company, discussed the implications of the new regulation and highlighted the importance of metering in the Nigerian electricity sector. He emphasized that while the regulation is a step in the right direction, there are still some challenges that need to be addressed. One of the key points raised in the interview was the issue of unmetered customers. Etomi explained that while high-net-worth customers have mostly been metered, a significant portion of consumers, around 32% to 40%, are still not metered. This has led to complaints about estimated bills and disputes between consumers and Discos. Implementing the new regulation is expected to address this problem and improve transparency in the billing process. Another important aspect of the new regulation is the type of meters that will be deployed. Etomi pointed out that the meters provided by MSPs must meet the required standards and ensure integrity in metering. With a shift towards smart meters and the replacement of old prepaid meters, the goal is to enhance the accuracy and efficiency of metering systems in Nigeria. While the introduction of the new regulation is a positive development for the electricity sector in Nigeria, there are still concerns that need to be addressed. The issue of cost-reflective tariffs remains a major challenge for Discos, as they struggle to meet financial obligations without adequate revenue. Ensuring that consumers are able to contribute to the cost of metering could help alleviate some of these concerns and improve liquidity in the system. Overall, the new electricity meter regulation by NERC holds promise for transforming the way electricity is billed in Nigeria. By involving private investors and introducing third-party meter providers, the initiative aims to accelerate the deployment of meters and improve transparency in the billing process. With proper implementation and oversight, the new regulation has the potential to revolutionize the consumer experience and drive efficiency in the Nigerian electricity sector.