Nearly seven years after the power sector was privatised, the industry is yet to overcome some of its problems. Notable is meter scarcity, which has become a burden to operators. Amid this, the Nigerian Electricity Regulatory Commission (NERC) has capped estimated billings for certain customers, writes AKINOLA AJIBADE.
Almost seven years after the power sector was privatised, the industry is still grappling with some problems. Besides the shortage of gas, irregular supply of electricity has become a recurring decimal.
Worse still, dearth of meters still poses a big challenge, despite the Federal Government’s efforts to end it.
Since last May, when a new metering policy was introduced to reduce the metering gap of over five million consumers in Nigeria, operators are yet to proffer solutions to the problem. This, no doubt, has made consumers to depend on estimated billings.
Though the Nigerian Electricity Regulatory Commission (NERC) recently capped the estimated billings of some classes of customers to reduce the bills they pay to electricity distribution companies (DisCos), the policy may not compel the DisCos to fast-track metering of their customers.
Sadly, the percentage of people who do not have meters grow daily, a development, which suggests that the problems of unmetered customers are far from being solved. While this lasted, many electricity consumers neither know how their consumption is being calculated, nor how to avail themselves of the opportunity given to them by the Federal Government to acquire meters from any of the 108 approved meter asset providers (MAPs) in the country.
The result is that many customers who do not have access to meters are made to resign themselves to fate, while others, who by sheer luck are able to get meters. Though the latter are not many, the development has shown that scarcity of meters is far from being solved in Nigeria.
Industry observers argue that metering has become a challenge, which successive governments contended with, stressing that the 11 power distribution firms authorised by the government to provide meters have failed.
Government’s views
The Minister of Power, Saleh Mamman, said liquidity is a serious problem, adding that the development informed the decision of the ministry to look for funds.
He argued that when the DisCos have enough money, they would not have problems of how to meet their obligations to the power generation companies (GenCos), which buy gas from suppliers of the product to generate electricity.
Read Also: ‘Effective metering key to power sector growth’
Operators’ argument
According to the Chief Executive Officer, Momas Electricity Meters Manufacturing Company (MEMMCOL), Mr. Kola Balogun, illiquidity is the bane of the sector.
He said lack of liquidity and insufficient funds arising from the absence of single-digit lending from financial institutions also pose serious challenge to metering requirements by the meter providers.
He urged the government to upscale the 30 per cent Local Content Act on metering to 79 per cent, adding that the idea would enable local meter manufacturers to attract investors into the sector for growth.
NERC’s position
According to NERC, the number of customers who have obtained meters in the past one year has increased substantially.
The commission, in its Metering Analysis for September 2019, said three million customers have been able to get meters. NERC stated that they got their meters from the MAPs, stressing that the providers were working to cover the metering gap of over five million people in the country.
It said there is a remarkable growth in the number of metered customers, adding that the new metering arrangement by the Federal Government to improve accessibility to electricity meters had paid off, and that the country would soon overcome the challenges of procuring meters.
Customers’ reactions
Though many consumers have applauded the government for introducing the new metering initiative, others have not. The latter claim that the idea has not helped to provide meters to many Nigerians.
A private firm official, Isaac Jegede, said he had tried to get pre-paid meters since meter asset providers started operation months ago but to no avail. He said he had for months applied online to New Hampshire Capital for meter, adding that he was yet to get it.
“For months, I have applied for a single-phase meter for my apartment in Ikorodu, a suburb of Lagos. However, no official of the firm has come to inspect my area for subsequent allocation of meters,” he said.
He was corroborated by many Nigerians who have suffered similar fate while trying to obtain meters.
Stakeholders’ opinions
Many stakeholders have faulted the position of the government on metering, claiming that it is very slow and not helping the growth of the sub-sector.
The Chief Executive Officer, Power Can Nigeria Limited, Mr. Biodun Ogunleye, argues that the government’s approach was ambiguous. He advised the government to usie simple methods to address the issue.
Ogunleye said: “The government is introducing too many ideas to solve simple problem in the power sector.”
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