Tag: DISCOS

  • NERC: DisCos generated N553.63b in Q1

    NERC: DisCos generated N553.63b in Q1

    The Nigerian Electricity Regulatory Commission (NERC) yesterday said that Electricity Distribution Companies (DisCos) collected a total revenue of N553.63 billion in the first quarter of 2025.

    According to NERC’s 2025 First Quarter Report published on its website, the amount was realised from a total billing of N744.27 billion issued to customers during the period.

    The report noted that this represented a collection efficiency of 74.39 per cent, compared to 77.41 per cent in the fourth quarter of 2024, when DisCos collected N509.84 billion from a total billing of N658.40 billion.

    “Which translated to 77.44 per cent collection efficiency. The 74.39 per cent collection efficiency recorded in 2025/Q1 is 3.05 Percentage Point (PP) lower than the collection efficiency recorded in 2024/Q4 which represents 77.44 per cent,” it said..

    The report said that  four Discos recorded collection efficiencies up to 80 per cent with Eko DisCo recording the highest collection efficiency  which accounted for 84.79 per cent of the collection.

    “Conversely, Jos DisCo recorded the lowest collection efficiency with 47.19 per cent.

    “A comparison of disCos’ performance shows that Kano had +6.55pp Abuja +4.81pp) and Enugu +0.72pp),” it said.

    According to the report, the three DisCos recorded improvements in collection efficiency between 2024/Q4 and 2025/Q1.

    Read Also: NERC fines eight DisCos N628m for violation of estimated bill caps

    The report said that the remaining eight DisCos recorded declines in collection efficiency with Port Harcourt recording  -15.11pp, Kaduna -7.12pp and Eko -5.21pp. It added that these Discos had the most significant declines over the period.

    The report also said that In 2025/Q1, billing and collection efficiencies declined by 2.47pp and 3.05pp respectively, compared to 2024/Q4.

    “Based on historical trends, this decline inefficiencies can be attributed to the increased energy off take of +10.06 per cent during the quarter compared to 2024/Q4.

    “It has been observed that there is an inverse relationship between DisCos’ energy off take and their billing/collection efficiencies.

    “Typically, when DisCos off take more energy, they often allocate the incremental energy to areas where they record historically lower billing and collection efficiencies, ‘’ it said.

    According to the report, the most proven methods to improve energy accounting and revenue recovery are accurate customer enumeration and the installation of end-use customer meters.

    It said that the commission issued the Order on the operationalisation of Tranche A of the Meter Acquisition Fund (MAF) in 2024/Q2.

    “ The Order, which became effective on 24 June 2024, directed DisCos to utilise the first tranche of disbursement from the MAF scheme to procure and install meters for unmetered Band A customers within their franchise areas.

    “As of March 2025, DisCos have metered more than 41,000 Band A customers through the MAF scheme.

    “In addition to the MAF, DisCos are expected to continue to utilise any of the metering frameworks provided for in the NERC, Meter Asset Programme (MAP).

    “ And the National Mass Metering Programme (NMMP ) metering regulation (2021) to improve end-use customer metering in their franchise areas, ‘’it said.

    The report added that these  metering initiatives by NERC would reduce commercial and collection losses, thereby improving the flow of funds to upstream market participants in the Nigeria Electricity Supply Industry(NESI).

  • ‘Why consumer metering remains a tough call’

    ‘Why consumer metering remains a tough call’

    For an average Nigerian, applying for an electricity meter has remained a herculean task, as it is easier for a camel to pass through the eye of a needle than applying for and getting a meter from the Distribution Companies.

    But recent finding by The Nation has indicated that the increasing difficulty of consumers applying for electricity meters across the Distribution Companies (Discos) is not unconnected with the inability of the Discos to comply with a regulation put in place by the Nigeria Electricity Regulatory Commission (NERC), which bothers on the time frame between time of application, payment and installation deadline for a customer.

    According to our market intelligence findings, a large number of prospective meter applicants are finding it increasingly difficult to log in to the various links provided by their Discos for meter application not because of technical issues as they may have been made to believe. Rather, is may have stemmed from a deliberate act to avoid sanctions from the industry regulator, the Nigerian Electricity Regulatory Commission (NERC).

    A NERC regulation on meter allocation and installation stipulates that a Discos must install a meter that has been paid for by a customer within 10 working days. “Where a person has paid for meter under the Meter Acquisition Programme / National Mass Metering Programme (MAP/NMMP) regulation and you are not metered within 10 working days, please report to  the Commission with evidence of payment,” the NERC advised on its website.

    Sources in the industry, especially inside sources in some of the Discos, told The Nation that because of the inadequacy of meters, the timeframe given for installation of the commodity by the industry regulator, that is NERC, and the strive to avoid the regulator’s sanctions should the Discos not be able to meet the 10 working days deadline for installation, portals for application are usually difficult to access.

    A source in one of the leading Discos confided in The Nation that deliberately, the utilities make the platform inaccessible to consumers and only open it up when they are sure they have meters to allocate.

     “The Discos are simply playing games with meter application. They make the platform difficult to access because once an application made has been paid for, NERC rules mandate that such applicant must have his meter installed within 10 working days. A contravention of this rule attracts sanctions for a Disco from NERC. This is why you will see an applicant struggling for over two weeks and in some instances, a month just to apply,” the source, who pleaded for anonymity, explained at the weekend.

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    Capitalising on this shortcoming, some staff members of the Discos are exploiting the situation to rip off consumers. A marketer with another Disco explained that some staff members of utilities have formed a syndicate that specialises in keeping a close tab on the website to know when it opens and immediately assists

     “Completing meter application online is very challenging. What happens is that once in two or three weeks, the portal for application opens up, usually, at about 1:00 am and 4:30 am. It is during this time that the lucky customers are able to fill the forms on their own- that is if they are awake at such times and if they are aware because nobody knows when the portal will be available,” the source said.

    Based on internal information, marketers that are contracted by customers for meter allocation, with the help of their colleagues, especially those in the information technology (IT) department are immediately availed of the state of the portal, and then proceed with application for their clients.

     “Aside the official amount charged for meters, some marketers charge as much as N30,000 to N50,000 as their own payment for rendering such service. You have to know its not an easy thing to keep vigil over an application portal for days or weeks in some instance, just to fill a form on a portal,” a marketer told The Nation.

    A customer on the platform of a Disco in the south west region of the country, Gbade Siyanbola, corroborated the findings. He explained he had to contract a marketer in his utility provider’s employ.

     “I tried registering but unable to do so; I got a marketer and after about one month, she called me at about 2:45 am to ask me for money to pay immediately because the “portal just opened” and may close before dawn. I sent her the money immediately and within six days after payment, I got my four meters installed. I probably would still have been waiting if I had insisted on this myself,” Siyanbola said.

    The issue of metering has remained a challenging task in the electricity sector. The NERC, in its  2024 third quarter (Q3) report, made it known that approximately 53.85 per cent of registered electricity customers across the country are yet to be metered.

    According to NERC, 6,156,726, representing 46.15 per cent of 13,339,635 registered electricity customers have been metered as of September 30, 2024. This means that 7,182,909 customers are yet to be metered, representing 53.85 per cent of unmetered electricity customers across the country.

    It stated in the report: “184,507 end-user customers were metered across all the Electricity Distribution Companies (DisCos) with Ikeja, Ibadan, and Abuja DisCos recording the highest number of meter installations, accounting for 25.45 per cent; 21.48 per cent; and 14.61 per cent respectively, of the total installations.

     “Relative to 2024/Q2 when 51,826 customers were metered, there was a +256.01 per cent increase in the total number of customers metered in 2024/Q3.”

    The NERC report also indicated that Eko, Ibadan, Ikeja and Benin DisCos recorded the greatest improvements of 2,120 per cent, 575.60 per cent, 417.40 per cent, and 389.32 per cent respectively in the number of meter installations compared to the second quarter of 2024.

    On the contrary, Aba, Kaduna, and Jos DisCos, recorded 43.90 per cent, Kaduna 24.69 per cent and Jos 9.31 per cent decline in the number of meter installations in the review quarter, respectively.

    Stakeholders in the industry have at several times, expressed concerns at the huge gap of unmetered customers despite penalties to get the DisCos to comply with NERC directives against capping estimated billing for electricity consumers.

    These concerns were manifest in the NERC report which indicated that for Q3’24, metering and billing accounted for 63 per cent of customer complaints received across all Discos in the third quarter (Q3) of 2024. From the report, the number of complaints received from all DisCos in Q3 2024 was 328,696. According to the regulator, this represented a 14.35 percent increase compared to the 287,441 complaints received in Q2 last year.

    It stated: “The most common issues among the 328,696 complaints received by DisCos in 2024/Q3 were metering, 41.95 per cent; billing, 21.28 per cent and service interruption, 7.05 per cent. These three complaints categories cumulatively accounted for 70.28 per cent of the total complaints in the quarter.

  • Fed Govt initiates moves to overhaul DisCos

    Fed Govt initiates moves to overhaul DisCos

    The Federal Government has initiated  reforms to revitalise the electricity distribution sector.

    The initiative is beginning  with a pilot overhaul of two underperforming Distribution Companies (DisCos).

     This follows a comprehensive assessment of systemic challenges plaguing the DisCos, including governance gaps, infrastructure deficits, and commercial inefficiencies.

     Power Minister Chief Adebayo Adelabu broke the news after a meeting with the Japanese International Cooperation Agency (JICA) in Abuja.

    There was a presentation of a roadmap titled:  ‘Revamping of the Distribution Sector in Nigeria’.

    His Special Adviser, Strategic Communications and Media Relations, Mr. Bola Tunji made this known in a  statement.

    The pilot scheme, slated to begin between this month and August, according to the statement, will target one DisCo in the North and another in the South.

     It aims to demonstrate a replicable model for operational turnaround, combining internal restructuring, external expertise, and federal oversight to achieve rapid improvements in service delivery.

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    JICA’s proposal emphasizes reforming DisCos “from within” by integrating outside experts, strengthening leadership, and aligning government support with short-term results in pilot zones to lay the groundwork for long-term sector-wide transformation.

    Adelabu stressed the urgency of the intervention, stating: “We can no longer fold our hands and watch the inadequacies of DisCos whose performances fall short of expectations. This pilot is not optional—we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.”

     He acknowledged persistent resistance to past reforms but vowed to address both universal challenges—such as vandalism and governance—and region-specific issues, including cultural barriers hindering operations.

    Key to the initiative is resolving the DisCos’ inability to invest in infrastructure upgrades, Adelabu said.

     “Their lack of investment is not solely due to unwillingness but also a lack of incentives. Returns on infrastructure spending are not commensurate, so we must attract investors and franchise viable and the not so viable areas to capable operators, so we can have a mix,” Adelabu explained.

    He directed the Nigeria Electricity Regulatory Commission (NERC) to enforce franchising opportunities and ensure DisCos’ cooperation, noting: “NERC must secure their buy-in.

    Past efforts failed due to resistance.

     He also highlighted the need for public education to clarify the roles of generation, transmission, and distribution entities.

     “Many Nigerians still view the sector as a single entity. Educating consumers is critical to building trust and support for these reforms, “he added.

    JICA’s proposal, developed after the minister’s earlier visit to Japan’s energy market, underscores a “holistic approach” to revamping distribution, including proactive government-JICA collaboration and measurable milestones.

    Takeshi Kikukawa, JICA’s Power Sector Policy Advisor to Nigeria, noted during the presentation: “The goal is to deliver immediate results in pilot areas while creating a sustainable foundation for nationwide improvement.”*

    The Federal Ministry of Power and NERC will finalise pilot details in the coming months, prioritizing DisCos with acute operational deficits. The initiative marks the most robust effort to date to resolve power distribution crisis, signalling a renewed push for accountability, investor confidence, and reliable electricity access.

  • FG begins initiative to overhaul DisCos

    FG begins initiative to overhaul DisCos

    The federal government has begun moves to initiate sweeping reforms to revitalize Nigeria’s electricity distribution sector, starting with a pilot overhaul of two underperforming Distribution Companies (DisCos).

    The move follows a comprehensive assessment of systemic challenges plaguing the DisCos, including governance gaps, infrastructure deficits, and commercial inefficiencies.

    Power Minister Chief Adebayo Adelabu disclosed the plan after a meeting with the Japanese International Cooperation Agency (JICA) in Abuja.

    There was a presentation of a roadmap titled, ‘Revamping of the Distribution Sector in Nigeria’. 

    His Special Adviser, Strategic Communications and Media Relations, Mr. Bola Tunji, made this known in a press statement yesterday.

    The pilot scheme, slated to commence between May and August 2025, according to the statement, will target one DisCo in the North and another in the South.

    It aims to demonstrate a replicable model for operational turnaround, combining internal restructuring, external expertise, and federal oversight to achieve rapid improvements in service delivery.

    JICA’s proposal emphasizes reforming DisCos “from within” by integrating outside experts, strengthening leadership, and aligning government support with short-term results in pilot zones to lay the groundwork for long-term sector-wide transformation. 

    Adelabu stressed the urgency of the intervention, stating: “We can no longer fold our hands and watch the inadequacies of DisCos whose performances fall short of expectations. This pilot is not optional—we will use regulatory authority to restructure underperforming DisCos and compel compliance if necessary.”

     He acknowledged persistent resistance to past reforms but vowed to address both universal challenges, such as vandalism and governance, and region-specific issues, including cultural barriers hindering operations. 

    Key to the initiative is resolving the DisCos’ inability to invest in infrastructure upgrades, he said.

    “Their lack of investment is not solely due to unwillingness but also a lack of incentives. Returns on infrastructure spending are not commensurate, so we must attract investors and franchise viable and the not so viable areas to capable operators, so we can have a mix,” Adelabu explained.

    He directed the Nigeria Electricity Regulatory Commission (NERC) to enforce franchising opportunities and ensure DisCos’ cooperation, noting: “NERC must secure their buy-in. Past efforts failed due to resistance, but this time, we will be intentional and decisive.” 

    Read Also: DisCos fail to collect N54.18b in February

    The Minister also highlighted the need for public education to clarify the roles of generation, transmission, and distribution entities. “Many Nigerians still view the sector as a single entity. Educating consumers is critical to building trust and support for these reforms, “he added. 

    JICA’s proposal, developed after the Minister’s earlier visit to Japan’s energy market, underscores a “holistic approach” to revamping distribution, including proactive government-JICA collaboration and measurable milestones. Takeshi Kikukawa, JICA’s Power Sector Policy Advisor to Nigeria, noted during the presentation: “The goal is to deliver immediate results in pilot areas while creating a sustainable foundation for nationwide improvement.”

    The Federal Ministry of Power and NERC will finalize pilot details in the coming months, prioritizing DisCos with acute operational deficits.

    The initiative marks the most robust effort to date to resolve the power distribution crisis, signalling a renewed push for accountability, investor confidence, and reliable electricity access.  

  • DisCos fail to collect N54.18b revenue in February

    DisCos fail to collect N54.18b revenue in February

    The Nigerian Electricity Regulatory Commission (NERC) said the 12 electricity Distribution Companies (DisCos) failed to collect N54.18billion from their customers in February 2025.

    This was contained in the Commercial Performance Data of the DisCos for February 2025.

    The document said the revenue raked in indicated a collection efficiency of 77.97 per cent.

    Of the total N245.93billion bills the energy distributors issued in February, they were able to collect N191.75 billion, leaving the balance of N54.18billion uncollected revenue.

    NERC said in the month under review, 2,583.19GWh was the total energy received while 2,135GWh was the total energy billed 446.19GWh was not billed.

    Read Also: IBEDC consumers threaten to migrate to other DISCOS

    According to the data, the billing efficiency was 82.73 per cent.

    On revenue recovery performance, NERC said whereas N116.18kwh was the actual tariff, the average collection was N88.2kwh. 

    The difference between the actual tariff and average collection which was N27.97kwh, was the cost of subsidy per kilowatt hour in February.

    The recovery efficiency in the month was 75.92 per cent, according to the NERC data.

    In the month under review, Ikeja DisCo received  the highest energy of 400.04Gwh and billed 332.37Gwh, recording a billing efficiency of 83.08per cent.

    It was closely followed by the Abuja DisCo which got 385Gwh and billed 278Gwh to record 77.08 per cent billing efficiency while Eko DisCo which received 365Gwh billed 325.45Gwh to record billing efficiency of 89.02 per cent.

    In terms of revenue collection, Eko DisCo raked in the highest of N41.24 billion, Ikeja N41.18billion and Abuja DisCo 35.67 billion.

    The least revenue collected regular firm was Yola DisCo with N60.2billion, Kaduna DisCo N117.21billion and Kano N127.78 billion.

    However Aba DisCo which has the least number of customers recorded N32.61billion.

  • Over N4tr debt owed DisCos challenging, NDPHC laments

    Over N4tr debt owed DisCos challenging, NDPHC laments

    The Nigerian Delta Power Holding Company (NDPHC) has highlighted the over N4 trillion debt owed to the Generation Companies (GenCos) as one of the major constraints facing the Nigerian Electricity Supply Industry (NESI).

    Its Managing Director Engr Jennifer Adighije made this known while hosting the House Committee on Power, led by its Chairman, Hon. Victor Nwokolo, on a site inspection of the Egbema NIPP Power Plant. 

    This was contained in the statement by the company’s General Manager,  Communication & Public Relations, Olufunke Nwankwo, on Friday.

    The statement said: “She (Adighije) highlighted the broader challenges facing the power sector, particularly a liquidity crisis of over ₦4 trillion owed to generation companies (GenCos).”

    She urged for presidential intervention to facilitate funding for ongoing projects, settle outstanding payments, and enhance electricity access nationwide.

    She reiterated NDPHC’s commitment to advancing Mr. President’s vision of reliable, affordable electricity, positioning the company as the backbone of Nigeria’s power sector.

    Nwokolo commended the NDPHC Management for their proactive approach in reviving the Egbema Power Plant and he proceeded to state that the project had faced delays due to litigation issues, but the new Management and contractor have significantly accelerated progress.

    Read Also: NERC: DisCos failed to collect N60b bills in December

    From the inspection, approximately 60% of the work has been completed, bringing the project closer to commissioning.

    He expressed confidence that with proper funding, the contractors will deliver on schedule.

    Addressing broader sectoral concerns, he acknowledged the cash crunch in the industry but praised the President for signing the Electricity Act, which has improved the financial viability of the power sector.

    He noted that new tariff structures are making the sector more attractive to investors and financial institutions.

    The Chairman further commended the President for his Renewed Hope Agenda and commitment to power sector reforms.

    He also commended the Minister of Power for his leadership and efforts in advancing critical projects.

     Adighije welcomed the delegation, emphasizing the significance of the Egbema Power Plant as a key project under the National Integrated Power Project (NIPP). She provided an overview of the plant’s status:

    She pointed out that the project consists of three generating units with an installed capacity of 375MW and that it was awarded to CMEC China Machinery Engineering Company in 2023, with completion targeted for end of the year.

    She also mentioned that NDPHC is closely monitoring progress to ensure timely completion.

  • DisCos failure to invest drawback to electricity supply, says minister

    DisCos failure to invest drawback to electricity supply, says minister

    • $2b attracted to sector last year

    Electricity supply is hindered by the continuous failure of the Distribution Companies (DisCos) to invest in the sector, Minister of Power Adebayo Adelabu said yesterday.

    According to him with requisite investment by the DisCos, more progress would have been achieved .

    Adelabu said the inflows attracted by the power sector last year were better than they were in 2023.

     He explained that their unwillingness to expand their distribution networks partly explains the low ‘’migration of more customers to Band A.’’

     Adelabu spoke at the public presentation of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) in Abuja.

    Adelabu explained that the NIEP and  NIRP document which has been approved in principle by President Bola Ahmed Tinubu might be ratified by the  Federal Executive Council(FEC) on Monday.

    He said: “It is a major one for us in the sector, and we are happy that we have submitted this for the approval of the Federal Executive Council.

    I can assure you that by next week, Monday, at the next FEC, it will be approved.’’

    He added: “They (DisCos) have refused to invest in this sector. Fine, it can be explained in a way but a lot of investment is required for us to achieve an accelerated migration of lower band customers into Band A. It is taking a lot of time.”

    The document was put in place by the ministry with support from the UK Foreign, Commonwealth and Development Office (FCDO) and the UK Nigeria Infrastructure Advisory Facility (UKNIAF).

     He added that the government might cancel some sections of electricity consumers classification to make it only three bands–  A, B and C.

    Adelabu explained that the planned move would lead to a reduction in tariff differentials and enable those in the lower bands to enjoy more hours of electricity.

    Under the current structure, customers in Band B, who enjoy 17 to 18 hours of electricity supply pay N63 per kilowatt-hour.

    Those in Band A, with two hours more of supply, are charged N209 per kilowatt-hour.

    Adelabu  said there was no  doubt  that Band A customers are ‘’better off than when using generators.’’

    The minister also said that the migration of some customers to Band A led to a  70 per cent growth in revenue of the power sector from N1.05 trillion last year to about N1.7 trillion.

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    Restating that the government would not continue to sustain electricity subsidy payments, the minister hinted that a second look at the current electricity tariff was likely.

    But he was quick to explain that such would not translate to an immediate tariff hike.

    He said: “I do not deceive myself. The government cannot afford to continue to fund the level of subsidy that our consumption pattern is throwing up. We have seen increasing consumption of electricity.

    ‘’The key issue, which is the market, liquidity, and sector reforms, we’ll continue to focus on that.

    “We’ll look at the tariff again. I am not saying that we’re going to increase the tariff but to look at the tariff and see how we can improve upon our modest achievement of last year.”

    He admitted that the Federal  Government’s  N3.9 trillion debt to Generation Companies (GenCos) constituted a major challenge to the power sector. 

    Out of the sum. N2 trillion is  legacy debt  and   N1.9 trillion on     electricity subsidy  last year

    Adelabu also said that DisCos were being owed N450 billion for electricity subsidy in 2024.

    He said:  “How do you expect the GenCos to perform optimally? How do you expect them to pay for gas, service and maintain their turbines and other infrastructure as well as pay their staff? A total of N4 trillion is being owed them.’’

    The minister recalled that the government attracted about $2 billion into the power sector last year.

    “Last year alone, we were able to capitalise close to $2 billion into this sector.

    “And this cuts across the conventional electricity sector and the alternative renewable energy subsector,’’ Adelabu said.

  • FG debt to GenCos, DisCos exceeds N4tr, says Adelabu

    FG debt to GenCos, DisCos exceeds N4tr, says Adelabu

    …capitalise $2b into the sector in 2024

    The federal government is now owing electricity Generation Companies (GenCos) and Distribution Companies (DisCos) over N4 trillion, according to the Minister of Power, Chief Adebayo Adelabu.

    He broke the news on Thursday at a public presentation of the National Integrated Electricity Policy (NIEP) and Nigeria Integrated Resource Plan (NIRP) in Abuja.

    He said that owing to the debt, there have been challenges in strengthening the power sector to deliver optimum service to consumers.

    Giving a breakdown, the minister said N2 trillion is owed to GenCos as legacy debt, while another N1.9 trillion is owed to them as part of the electricity subsidy for 2024, while DisCos are owed N450 billion for the 2024 electricity subsidy.

    Adelabu said the government would not be able to sustain the payment of the electricity subsidy.

    He, however, noted that the government would continue a new model of intervention by identifying a segment of the population that is really in need of it.

    His words: “How do you expect the GenCos to perform optimally? How do you expect them to pay for gas, service, and maintain their turbines and other infrastructure as well as pay their staff? If a total of N4 trillion is being owed to them.”

    “I do not deceive myself. The government cannot afford to continue to fund the level of subsidy that our consumption pattern is throwing up. Because we have seen increasing consumption of electricity. The key issue, which is the market, liquidity, and sector reforms, we’ll continue to focus on that.

    “We’ll look at the tariff again. I am not saying that we’re going to increase the tariff but to look at the tariff and see how we can improve upon our modest achievement of last year.”

    He also decided the lack of investment in the distribution networks of DisCos, saying the government has not seen migration of more customers to Band A as it anticipated due to DisCos refusal to invest.

    Read Also: Adelabu storms Japan in bid to improve grid reliability

    “They have refused to invest in this sector. Fine, it can be explained in a way, but a lot of investment is required for us to achieve an accelerated migration of lower band customers into Band A. It is taking a lot of time.”

    He added that the government is looking at cancelling some sections of electricity consumers’ classification to make it three – bands A, B and C.

    He said this is to reduce the tariff difference among them to enable those at the lower bands to enjoy more hours of electricity.

    Adelabu noted that NIPR has been approved by President Bola Ahmed Tinubu in principle.

    According to him, it has been submitted and will be approved by the Federal Executive Council next week.

    He said, “So it is a major one for us in the sector, and we are happy that we have submitted this for the approval of the Federal Executive Council.

    I can assure you that by next week, at the next FEC, it will be approved.

    “It is been approved in principle anyway, but the express approval is what we’re waiting for. Mr. President has seen it, has approved it.

    “All the other ministers that we send these things to, they have sent their feedback, which we have incorporated.

    “So I can tell you that it has been approved in principle, but the express approval will happen on Monday at the next FEC meeting.”

    The minister said that in terms of capitalizing investment into the sector, a huge investment is required.

    He recalled that the government was able to attract about $2 billion into the sector last year.

    “So last year alone, we were able to capitalize close to $2 billion into this sector.

    “This cuts across the conventional electricity sector and the alternative renewable energy subsector. So we are happy with this.”

  • DisCos activate MAF to meter Band A customers

    DisCos activate MAF to meter Band A customers

    Electricity Distribution Companies may have activated the Meter Acquisition Fund (MAF) to replace faulty or obsolete meters for consumers on the Band A belt. The MAF scheme is an initiative of the Federal Government under the Presidential Metering Initiative (PMI) designed to provide meters to Band A customers at no cost. It aims to replace faulty meters and accelerate the migration of postpaid customers to prepaid. The process is monitored by the industry regulator, the Nigerian Electricity Regulatory Commission (NERC).

    For instance, the Eko Electricity Distribution Company (EKEDC) recently commenced the distribution of free prepaid meters to Band A customers within its franchise area under the MAF scheme.

    The General Manager, Corporate Communications of EKEDC, Babatunde Lasaki, expressed the Company’s commitment to metering eligible customers within the 60-day timeline of the project. He said: “We encourage all our Band A customers with obsolete and faulty meters to proceed to our website to apply for a replacement at no cost. If you are a postpaid customer under any of our Band A feeders, please apply, and we will meter you immediately.”

    In similar vein, Ikeja Electric (IE), on its website, called on its Band A customers to key into the free meter acquisition initiative.

    Although the utility did not stipulate a timeframe for the exercise, it nonetheless urged its customers to take advantage of the opening to replace their obsolete meters.

    “Replace your Unistar card meter for free and enjoy accurate real-time energy tracking, seamless recharging and better control of your consumption. Meters under MAF scheme is free and eligible for Band A customers only,” IE posted on its website.

    Read Also: DisCos failed to collect N42.07b in November 2024 – NERC

    The issue of meter acquisition has been contentious given the posturing of the Discos, who had hitherto insisted on consumers paying for meter replacement.  A major challenge for DisCos has been the inadequate metering of end-use customers.

    This, it is believed, contributes to the Aggregate Technical Commercial & Collection (ATC & C) losses experienced in the electricity sector. This was why the governemtnintroudced the MAF scheme to assist the utilities.

    To set out the parameters for the disbursement of Tranche A of the MAF, the Nigerian Electricity Regulatory Commission (NERC) issued the Order on the Operationalisation of “Tranche A” of the Meter Acquisition Fund.

    MAF aims to act as a catalyst to raise finance for the DisCos to meet their metering targets. By virtue of the Multi-Year Tariff Order (MYTO) 2024 for DisCos, they are expected to make a contribution of N1.185/kWh to the MAF and this contribution which can also be reviewed in line with the changes to the administration of MAF and other macroeconomic variables.

    The Order provides that all 11 DisCos, subject to the fulfilment of the eligibility conditions are entitled to specified sums out as set out in Schedule 1 of the Order. Ultimately, the Order envisages that the financing to be provided under the MAF will speed up the deployment of meters, close the metering deficit, reduce ATC & C losses and enhance quality of service and improve customer satisfaction.

    Lasaki clarified that the MAF scheme does not nullify the Meter Asset Provider (MAP) scheme, but running simultaneously, which allows customers to purchase their meters and get refunded the cost over time.

    MAF, however, is an intervention of the Federal Government to address the metering challenges for Band A customers. “The MAF scheme isn’t only for Band A customers, however, this is the first tranche of the intervention and is solely for Band A customers. Other tranches will commence soon which will cut across our customer base,” he added.

  • DisCos get Jan 1 deadline to end meter upgrade

    DisCos get Jan 1 deadline to end meter upgrade

    • NERC threatens sanction

    Electricity Distribution Companies (DisCos) has up till January 1 next year to complete meter upgrade -Standard Transfer Specifications (STS) meters for all their customers.

    The Nigerian Electricity Regulatory Commission (NERC), which gave the deadline yesterday, threatened to sanction any errant operator.

    According to a statement on its X handle yesterday,  NERC gave the ultimatum during the Fourth Quarter of 2024 Nigerian Electricity Supply Industry (NESI) stakeholders meeting.

    It vowed to impose penalties on any defaulting DisCos.

    The statement reads: “NERC has directed DisCos to rapidly conclude the migration of STS-Meters for all their customers to prevent disruption of service.

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    “During the Q4 NESI Stakeholders Meeting, the Commission warned that daily penalties would be imposed for each meter not migrated effective from 1st January 2025.”

    The Commission  emphasised the responsibility of the DisCos to replace all obsolete/faulty meters within their franchise.

    Pursuant to the provisions of the Customer Protection Regulation 2023, the commission noted that DisCos are neither allowed to charge customers for the replacement of obsolete/faulty meters nor transfer customers to estimated billing.

    At a stakeholders’s meeting early last month, the Executive Vice Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC), Mr. Tunji Bello, called DisCos to prioritise the rights of consumers in the metering processes.

    He expressed concern over the systemic inefficiencies that plague consumers, particularly in metering and billing practices.

    Bello said: “We are here today because consumers’ rights in metering must be a priority.

    “The recent challenges, especially the arbitrary billing practices and the lack of transparency in metering are unacceptable.

    “We must ensure that consumers are treated fairly and that all practices adhere to the guidelines set out by regulatory bodies like the NERC.”