Industry stakeholders have emphasized the need for sustained metering efforts in order to address the issue of approximately 7 million unmetered customers, as per data from the Nigeria Electricity Regulatory Commission (NERC). Under the Multi Year Tariff Order (MYTO) regime, which supports periodic review of electricity tariffs, key players have called for a balanced approach in the power sector downstream.
Engr. Kola Balogun, CEO of Momas Electricity Meters Manufacturing Company Limited, expressed his views on the planned tariff hike. He stated that while tariff increases could encourage investment recovery and job creation, it is crucial to ensure proper balance in the downstream grid supply system. Balogun explained that the impending tariff structure, combined with estimated billing, would result in significant disparities, causing those without meters to pay exorbitant amounts.
According to Balogun, the liberalization of customer metering would bring substantial benefits to both the Nigerian Electricity Supply Industry (NESI) and electricity consumers. It would alleviate the dual challenges of poor services and high estimated billing. The first advantage of liberalization would be an increase in Distribution Companies' (DisCos) allowable capital expenditure (capex) requirement, enabling them to invest more in network improvements and reduce technical losses. Moreover, the metering gap would be closed more rapidly as customers would be compelled to procure their own meters to continue receiving electricity services.
Balogun stressed that liberalizing customer metering by separating the cost of electricity meters from energy tariffs and allowing customers to directly purchase their meters as part of their connection cost to the grid is the most effective approach to address the current and future metering gap. This strategy would enhance customer satisfaction and their willingness to pay for electricity services.
MOJEC International, in collaboration with the Federal government under the National Mass Metering Programme (NMMP) and the Meter Asset Providers (MAP) initiative facilitated by the Nigerian Electricity Regulatory Commission (NERC), has been working to meter more Nigerians who fall under the estimated billing bracket. They have provided meter assets and installations through respective DisCos, ensuring that households only pay for the electricity they consume while securing funds for the DisCos.
Ms. Chantelle Abdul, Group Managing Director (GMD) and Chief Executive Officer (CEO) of MOJEC International, highlighted their commitment to assisting the electricity sector in reaching its full potential. She noted that when they initially entered the sector, 80% of Nigerians lacked meters, but they have significantly reduced that number to at least 50%. MOJEC has invested in research and development to design and produce meters tailored to the specific needs of Nigeria and other African countries.
The Meter Assets Providers have raised concerns about their inability to source foreign exchange from official channels and have urged regulators to address this issue. The association representing them stated that they may be unable to continue supplying meters under the MAP program unless meter prices are properly reviewed.
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