Tag: NERC

  • NERC okays 35.5% increase in prepaid meter prices

    NERC okays 35.5% increase in prepaid meter prices

    • Single-phase, three-phase costs go up

    Electricity regulator, the Nigerian Electricity Regulatory Commission (NERC), has approved an upward increase in the cost of acquiring prepaid electric meter in the country.

    A single-phase prepaid meter will now cost N81,975.16, up from the previous N58,661.69, while the cost of a three-phase prepaid meter has been raised to N143,836.10, from the previous N109,684.36.

    In a circular, dated September 5, 2023, by NERC Chairman Sanusi Garba and the Commissioner of Legal, Licensing, and Compliance, Dafe Akpeneye, the commission explained that the increase was meant to create an equitable and sensible meter pricing system that would be fair to Meter Asset Providers (MAPs) and end-users.

    As contained in the NERC circular, MAPs will ensure ability to recover reasonable costs associated with meter procurement and maintenance while ensuring that their pricing structure allows for a viable return on investment.

    It will also evaluate affordability of meter services for consumers to prevent excessive pricing that could burden end-users.

    Read Also: Shettima, Ganduje, Uzodimma hail judgment

    Relying on the provisions of Section 8(1)(c) of the Regulations which provide that the costs of single-phase and three-phase meters for MAPs – inclusive of all other associated costs of installation and warranties shall be at the regulated rates approved by the commission – NERC approved the review of meter prices of MAP-issued meters.

    The regulator added: “The approved meter prices are exclusive of Value Added Tax (VAT). The approved meter prices are also inclusive of the revised Nigerian Electricity Management Services Agency (NEMSA) sealing cost.

    “All MAPs shall adjust their prices to reflect the approved rates. All MAPs shall supply meters previously paid for by end-use customers prior to the commencement of this order at the prevailing rate when payment was made by the customers without additional increase in cost.

    “All DisCos and MAPs are to develop/implement customer enlightenment campaigns on the price review along with a schedule on the implementation of their meter rollout plans.

    “All MAPs shall continue to file monthly sales and meter installation returns with the commission.”

  • NERC: old meter credit should be transferred to new one

    NERC: old meter credit should be transferred to new one

    The Nigeria Electricity Regulatory Commission (NERC) has said customers have the right to transfer the credit on their old meters to their new ones.

    General Manager, Finance and Management Services, NERC, Dr Abdulkadir Shettima, made this known during the NERC’s workshop for civil society organisations and consumer advocacy groups in Kano, according to the commission’s Tweeter handle yesterday.

    His words: “The customer also has the right to whatever credit that is on the old meter to be transferred to the new meter.”

    Read Also: Ousted president pleads for help

    He was making a presentation on “Metering Issues, Steps Taken So Far to Address the Challenges”.

    He added that customer has the right to repair or replace faulty meters within two days upon complaint unless the fault is from him in which case, he would be required to make upfront payment.

    Shettima also said the customer has some obligations to perform among which is to authorize access to the meter & connection to the DisCos because a default could lead to disconnection.

    According to him, the customer also has the obligation to ensure safety of the meter and to prevent unauthorized access to the meter.

    Speaking, NERC DGM Consumer Affairs,

    Dr. Shittu Shaibu, noted that every bill issued to a customer must bear the payment and delivered to the customer 10 days ahead.

    He said, “For every bill that is given to a customer, the payment must be written on the bill. This is the most interesting part and it has to be delivered by the agreed means, ten days before the due date.”

    He added that “In the CPR 2023, the DisCo is mandated to give additional two working days as grace period before disconnection.”

    Speaking, Commissioner Aisha Mammud, noted that some DisCos installed meters on the pole.

    Wondering about the safety of their meter, she said “in such a situation how on earth will someone guarantee the safety of the meter?”

    The basic intention of the workshop was to get civil societies informed of what NERC is doing to improve the sector and different laws and measures that have been put in place, and the workshop met its objectives.

    According to BSWEEP, Coordinator, Ruqayya Ibrahim Kewa, from the presentations they are doing a lot about evaluation of their licensees and they are doing a lot about enlightenment of industry participants.

    She urged NERC to also increase its efforts on synergy with stakeholders.

    She sought the sensitization of officials of state high courts on improved prosecution of energy theft and vandalism cases.”

  • Sanction erring power firms, NERC told

    Nigerian Electricity Regulatory Company (NERC) should sanction erring power distribution companies (DisCos) to keep them on their toes, a group, Change Partners International, has said.

    Its Founder, Mr Akachukwu Okafor, said the advice is relevant now that the Federal Government and Siemens Incorporation have held talks on how scale up power generation by 11,000 megawatts (Mw) of electricity.

    In an interview with The Nation on phone, Okafor said many of the 11 DisCos have committed grievous offences in the past and went scot free, adding that any attempts to spare those firms again would affect the image of the industry.

    Okafor said: “Siemens is a world-class firm, with competence in generation and technologies. The company has the capacity to deal with issues we have with the grid in Nigeria. The contracts with Siemiens would strengthening the grid infrastructure, transmission lines and distribution networks in Nigeria. This is the reason the power distribution firms must be penalised in order to enable them do the tight thing.”

    According to him, the contract between the Federal Government and Siemens would help in boosting the the power sector.

    The government, Okafor said, must try and meet its obligations in order to ensure the success of the deal, adding that the German government has also put in place measures in order to ensure that the contract is delivered at the right time.

    He commended the Federal Government for partnering Siemens, stressing that the initiative is the best since President Muhammadu Buhari assumed office five years ago.

    He said: “The synergy between the Federal Government and Siemens to improve electricity in Nigeria is a good one. It is commendable as it is the best since Mr President assumed office about five years ago.”

  • High points of the Eighth Senate

    As the Abubakar Bukola Saraki-led Eight Senate prepares the wind down ahead of May 29, 2019 handover date, Assistant Editor, Onyedi Ojiabor, assesses the highpoints of the upper legislative Chamber

    How time flies. At the inauguration of the Eighth Senate on June 9th, 2015, it appeared the four year tenure of Abubakar Bukola Saraki Senate Presidency was for perpetuity. The Eighth Senate is gradually drawing to a close. Four years is indeed not eternity.

    Controversy may be dubbed the second name of the Eighth Senate. Beginning with its inauguration and the controversial emergence of its presiding officers, it may be safe to conclude that the Eighth Senate began with disagreement and ended with disagreement.

    The Eighth Senate may have had its fair share of divergence views on national issues which adversely affected its relationship with the executive arm of government, some areas of unanimity of purpose abound. That may be the nature of politics; the politics of management of controversies. The no love lost relationship between the Senate and the Presidency arising from the emergence of the Senate leadership, did not help matters. Attempts to stitch the crack between the two arms only scratched the surface. If it is cracked, it can never be the same again, observers say. To say that the Presidency was perpetually suspicious of the Senate may be to say the least.

    The frosty relationship between the two arms of government created room for deep distrust. Distrust became the harbinger of intrigues, scheming, plots, machinations and conspiracies. Two arms of the same government scarcely agreed on any issue of national importance. Governance became a ding-dong affair.

    The Eighth Senate was not only about controversy though. Something good, Senate watchers say, came out of “Nazareth.”

    Read also: African CSOs task Senate on tobacco control

    The Saraki Senate Presidency tried to connect with Nigerians through bills, motions, interventions and engagements on nagging national issues.

    The engagements may be the high points of the Eight Senate.

    The #OpenNASS campaign championed by some civil society organisations paid off when Saraki threw open and removed the lid on the budget of the National Assembly.

    It was all about transparency in the management of the National Assembly budget and resources. Observers say for the first time since Nigeria’s return to democracy in 1999, the detailed budget of the National Assembly was laid on the floor of the Senate plenary, alongside the report of the annual Appropriations Bill.

    National Assembly budget was also published online for closer public scrutiny and monitoring.

    One of the effective interventions was on fixed and bulk metering of consumers through which electricity generating and distributing companies fleece Nigerian electricity consumers.

    “In August 2015, the Senate mandated the Nigerian Electricity Regulatory Commission (NERC) to immediately abolish fixed charges on electricity consumption and bulk metering of villages and communities, as the practice was deemed contrary to the interest of consumers.”

    Identified fraud in Treasury Single Account (TSA) Management, was another intervention the Senate made.

    “In November 2015, the Senate detected fraudulent activities in the implementation of TSA, raised a resolution to bring such practices to a halt.” The intervention was said to have saved the country N25 billion.

    The Senate also intervened to cushion the effect of the humanitarian crisis in the Northeast. “In March 2016, the Senate allocated N10billion in the annual budget to Internally Displaced Persons (IDPs) in the Northeast, to alleviate adverse humanitarian consequences unleashed by insurgents in the region.”

    On the fraud in humanitarian crisis management in the Northeast, on October 4, 2016, the upper legislative chamber launched investigation into alleged corruption in the management of the humanitarian crisis in the Northeast. A fact-finding technical team, headed by irrepressible Kaduna Central Senator, Shehu Sani, was dispatched to conduct on-the-ground assessment of the situation. This investigation by the team ultimately led to the dismissal of the then Secretary to the Government of the Federation (SGF), Babachir David Lawal, for alleged misappropriation of N200million meant for IDPs in the Northeast.

    Another intervention was on fraud in the import duty waivers scheme. In May 2016, a Senate probe uncovered abuse and fraud to the tune of N447 billion in the import duty waivers scheme on rice.

    It also fought to end fraud by revenue generating agencies which came through point of order and motions. On November 30, 2016, it resolved to probe revenue generating agencies of the Federal Government for leakages, non-remittance and misuse of generated revenue. The investigation, according to findings, revealed that “majority of MDAs had, over a long period, spent billions of generated funds without the necessary annual appropriation by the legislature.”

    Another intervention was on the controversial access to Foreign Exchange (Forex) for businesses. In 2017, “the Senate intervened in the lack of access to Forex for SMEs across the country, owing to Central Bank of Nigeria’s policies at the time. The intervention led to a review of the CBN policy to enable small business owners to access necessary Forex for the import, export and service delivery needs.”

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  • Mass metering- Discos Vs NERC

    Sir: It is said that when two elephants fight, it is the grass that will suffer. In the recent report available to the public, the Nigerian Electricity Regulatory Commission (NERC) reiterated that the obligation to ensure that all electricity consumers have meters remained with the Disco under Meter Asset Provider Regulations 2018. The deadlines for consumers metering have continued to lapse. Lately, it was alleged that the Executive Director, ANED, Sunday Oduntan said that metering was no longer the responsibility of Discos.

    These words kept consumers wondering if the comprehensive metering enshrined in the performance agreements signed with the Bureau of Public Enterprises (BPE) is no longer tenable.

    The anticipated power reform act sponsored by the Majority Leader of the House, Femi Gbajabiamila for compulsory installation of pre-paid meters in favor of all power consumers in Nigeria hangs in the balance.

    When I checked the definition of estimate from the Oxford advanced learner’s dictionary by A.S. Hornby , it hasn’t changed from,  a judgment that you make without having the exact details or figures about size, amount, cost, etc. of something. It is therefore a guess work, a world of uncertainty haunted by corruption, where transparency no longer matters and opportunities for officials to cut corners reigned supreme.

    The continued use of estimated billing and bulk metering therefore is grave injustice to millions of Nigerians who want prepaid meters. And I think after 57 years of bumpy crawling, we should now walk if we can’t fly in power sector. It is worth emphasizing that the estimated billing has left many businesses in excruciating pain and forced some to shut down.

    Not metering customers is prolonging the agony of Nigerians. Democracy is enjoyed today because of those that fought for it, men and women had offered their lives to defend our freedoms. The various inventions we enjoyed today were as result of the hard-fought achievements by those inventors who cared so deeply to change lives.

    The information available to the public domain indicated that the federal government had consistently waded into the issue of metering through various means, yet the nettle covers with fine hairs continued to sting when touched. Who will help Nigerians pull the root of the nettle? Again, the NERC has promised mass metering will begin on May 1; we hope it make do its promise this time.

    The power sector in the world is one of the most profitable businesses and Nigeria cannot be an exemption. The fear of a reduced inflow of revenue if all consumers are metered would only be in the short run barring efficient management.

    It is a general believe that Distribution Companies (Discos) are reluctant to provide prepaid meter because they make more money from estimated bills. The fact is, some consumers are ready to buy and enjoy a fair billing but when the prepaid meters are not available what can they do? To the ordinary people in the street, prepaid meter is like a sim card that was pretty hard to obtain initially but now offered free by the telecommunication operators.

    An ordinary man in the street will not understand why any company would not be interested in universal metering of consumers, if prepaid meters are given to consumers, the energy spent on debt recovery by Discos will vanish, revenue collection will improve, operation cost will reduce and it will help its consumers improve their energy efficiency.

    If we consider the several options of sources of power opened to us in Nigeria, one would wonder why we are not fully utilizing other sources of energy like coal, wind, solar thermal, biomass and waste and that is the reason we are still swimming in the paltry less than 10,000 megawatts.

    ‘Up Nepa’ is as old as Methuselah but he died at a point. The metering of Nigerians will offer a befitting burial for ‘Up Nepa’.

    The next level of fixing energy challenge by the APC-led government will have a spiral effect on the economy and will score the government very high.

     

    • OlusanyaAnjorin,

    Lagos.

  • PHED, others get NERC’s permit on metering investors

    The National Electricity Regulatory Commission (NERC) has okayed permits to Port Harcourt Electricity Distribution Plc, Yola Electricity Distribution Company Plc, Enugu Electricity Distribution Company Plc, & Ibadan Electricity Distribution Company Plc, DisCo’s Meter Asset Providers (MAPs). This is in accordance with section 4(3) of the MAP Regulations- NERC- R-112 of 2018.

    These are  MAPs that were successful in the procurements conducted by Port Harcourt Electricity Distribution Plc (PHED),  Yola Electricity Distribution Company Plc (YEDC), Enugu Electricity Distribution Company Plc (EEDC) and Ibadan Electricity Distribution Company Plc (IBEDC).

    Section 4(3) of the MAP Regulation 2018 requires all electricity distribution licensees to engage MAPs that would assist, as investors, in closing the metering gap and thus eliminating the practice of estimated billing in the Nigerian Electricity Supply Industry (NESI), according to a statement.

    PHED has appointed Armese Consulting Ltd and Holley Metering Ltd, YEDC has Chris Ejik International Agencies Ltd, EEDC appointed Mojec International Ltd, while IBEDC appointed CWG Plc, Integrated Resources Ltd, Mojec International Ltd, Momas Electricity Meters Manufacturing Company Ltd, New Hampshire Capital Ltd, Protogy Global Services Ltd and Tinuten Nigeria Ltd respectively to provide meters within their respective franchise under MAP.

    maintenance and replacement over its technical life.

    The Commission shall monitor closely the rollout plan of distribution licensees and overall compliance with the regulation and various service agreements by the MAP and electricity distribution licensees.

     

  • Crazy bills era set to end

    Electricity consumers seem to be winning their age-long battle against estimated billing.

    The Nigerian Electricity Regulatory Commission (NERC) plans to cap the estimated billing system by fast-tracking metering of all customers.

    NERC’s General Manager, Finance & Management Services, Abdulkadir Shettima, dropped the hint in a chat with The Nation on the sidelines of the launch of bank consumer and retail financing scheme of Meter Asset Provider (MAP) meter acquisition summit in Lagos yesterday.

    Shettima noted that the capping of estimated bills will compel MAP operators to meet targets on the metering policy.

    The summit, organised by Mojec Meter Asset Management Company, one of the MAP operators, brought together power sector regulator, banks, MAP operators and some Managing Directors of Electricity Distribution Companies (DisCos) to find solutions to some issues in the MAP metering project.

    On why the Commission opted to cap estimated billing when customers look forward to expedited metering when the MAP scheme takes-off next month, Shettima said all customers will not be metered at same time.

    Read also: Mushin, Lawanson residents reject ‘crazy bills’

    Besides, he said that the NERC would not want customers that are not metered early enough to get outrageous bills.

    His words: “We are very serious in ensuring all customers are metered at a maximum of within three years and the metering starts from May this year. Because we don’t want the MAPs or the distribution companies to relax and take this project as any other rule or regulation that they will try to circumvent, we came up with several ways to make sure they comply.

    “One of the ways is that they post a cash-backed performance bond that can be called upon and they will lose money if they don’t meet their target, the monthly metering requirement.

    “The second one is this capping of estimated bills. Currently, customers that don’t have meters are given estimated bills that are ‘crazy’ in some respects. We want to stop that practice.

    “There will be a cap; if a distribution company feels that cap is too low and it is losing money, it is incentivised to go and meter that customer. Assuming the cap is N4,000 and the DisCo feels if that customer is metered it can collect N10,000, let it quickly go and meter that customer if it believes the customer’s consumption is up to that.

    “The reason we came up with this measure is to ensure compliance with this current metering scheme and to fast-track the level of metering so customers pay for what they consume.

    “There is a committee that is working on the capping because a lot of analysis has to be done and also a lot of consultation with all the stakeholders, including the DisCos, MAPs and customer groups to arrive at what is fair, so the cap has to be a cap that is realistic, not too high and not too low.”

    According to Shettima,  the number of unmetered customers has risen from 4.7 million in December 2017 to five million now.

    According to him, MAP operators will pay 2.5 per cent of the total cost of the entire meters’ performance bond.

    Shettima said: “For instance, if the meters are N100 billion, they will post 2.5 per cent of the N100 billion performance guarantee and it will be backed by cash.

    “It is as a result of this measure that the MAP operators said they will not ask customers to pay unless they have the meters ready and they will meet the 10-day installation deadline from the date the customer pays for meter. So, there will be financial sanctions when an operator defaults in a contractual agreement.

  • NERC moves to end estimated billings, licenses meter providers for Ikeja, Benin DisCos

    The Nigerian Electricity Regulatory Commission (NERC) says it has issued permits to Meter Asset Providers (MAP) of Ikeja and Benin Disco’s in accordance with Section 4(3) of the MAP regulations.

    A statement by Dr Usman Arab, NERC’s General Manager, Public Affairs, in Abuja on Friday said the permit was granted to the MAPs that were successful in the procurements conducted by Ikeja and Benin DisCos.

    Arab said Section 4(3) of the 2018 MAP regulations required all electricity distribution licensees to engage MAPs that would assist as investors to close the metering gap and thus eliminate the estimated billing in the Nigerian Electricity Supply Industry (NESI).

    He said Ikeja DisCo has appointed Mojec International Limited to provide 399,790 meters, while Consolidated Infrastructure Group Ltd is to provide 397,922 meters.

    Similarly, New Hamshire   Capital Ltd would also supply 276,699 meters within the Ikeja   Disco’s coverage areas under MAP.

    He said Benin Disco has appointed FLT Energy System Ltd, G-Unit Engineering Ltd, Inlaks Power Solution Ltd, Sabrud Consortium Nigeria Ltd and Turbo Energy Ltd to provide meters within its coverage areas.

    Read also: Anxiety as NERC meets operators on metering

    He said NERC has directed that the rollout of meters shall begin on May 1.

    Arab said customers of Ikeja and Benin Discos should expect installation of the meters within 10 working days of making payment to MAPs in accordance with Section 18 (3) of the MAP regulations.

    According to him, MAPs shall charge an upfront of N36,991.50 for single phase meters and N67,055.85 for three-phase meters.

    “These costs of meters are inclusive of supply, installation, maintenance and replacement of meters over its technical life.

    “The commission shall monitor closely the roll out plan of distribution licensees and overall compliance with the regulations and various service agreements by the MAP and electricity distribution licensees,” he said. (NAN)

  • Anxiety as NERC meets operators on metering

    Anxiety has gripped firms, which applied to serve as Meter Asset Providers (MAPs) under the new metering arrangement, following the Nigerian Electricity Regulatory Commission’s (NERC’s) decision to invite them for a meeting this week.

    The 115 firms were in a last minutes rush to know the details of the meeting as they made frantic efforts to ensure that their chief executive officers, were available for the meeting, which is billed to hold in Abuja.

    However, sources told The Nation that the meeting may not be unconnected with granting approval to firms shortlisted for reducing the metering gap of 4.8 milliion people in the country.

    The sources further said the need to fashion out modalities for the take-off of the firms and the date for the commencement of their operation, among others, informed NERC’s decision to invite them to the meeting.

    Reacting, Momas Electricity Meter Manufacturing Company Limited (MEMMCOL) Chief Executive officer, Kola Balogun, said he believed the meeting would discuss knotty issues that pertain to the operation of the meter asset providers.

    He said the Commission was eager to move the sector forward by proffering solutions to meter shortage in the country, adding that stakeholders in the value chain, especially meter providers and the consumers, are looking forward to a date, when the scheme would be fully implemented.

    Balogun, whose firm is also a prospective meter asset provider, said the sub-sector is bedeviled with problems such as shortage of meters, adding that NERC’s decision to take off the burden of distributing meters from the eleven power distribution companies (DIsCos) and instead allow some privately owned companies to help in providing meters to consumers, would move the sector forward.

    According to him, meter asset providers would be happy to start operation as soon as possible, adding that the indigenous manufacturers of meters are ready for the job. He said operators are expecting the meeting to iron issues that are bothering them and provide them the way forward.

    “I believe the meeting would come out with a communiqué that would tell us the position of things on the new metering programme. It is after the meeting that everybody, especially the prospective meter asset providers, would know when they would commence operation,” he said.

    The Federal Government through the Minister of Power, Works and Housing, Babatunde Raji Fashola, last month, announced plans by the government to license meter asset providers to help in providing meters to consumers across the country.

    Thereafter, NERC obtained and sought out applications from firms that want to play as meter asset providers and fixed January 2019 for the commencement of their operation.  However, firms are waiting for NERC to fix a new date for the commencement of their operation following their inability to start operation in January as planned.

  • NERC permits firms to rollout 1.4million meters

    The Nigerian Electricity Regulatory Commission (NERC) issued permits to Meter Asset Providers (MAPs) on 5th April 2019, to roll out 1,400,000 meters. The directive, according to a statement that the NERC’s General Manager, Public Affairs Department, Dr. Usman Abba Arabi issued yesterday, is in line with section 4(3) of the MAP Regulations 2018, to MAPs that were successful in the procurements conducted by Abuja Electricity Distribution Company Plc (“AEDC”) and Jos Electricity Distribution Company Plc (“JEDC”).

    The statement noted that section 4(3) of the MAP Regulation 2018 requires all electricity distribution licensees to engage MAPs that would assist, as investors, in closing the metering gap and thus eliminating the practice of estimated billing in the Nigerian Electricity Supply Industry (“NESI”). AEDC, said the commission, has appointed Mojec International Limited, Meron Consortium and Turbo Engineering Limited to provide 487,000, 213,000 and 200,000 meters respectively while JEDC has appointed the Triple 7 and Mojec International Limited consortium to provide 500,000 meters.

    The Commission has directed that the rollout of meters shall commence no later than the 1st of May 2019.  Customers of AEDC and JEDC should expect from the commencement of rollout date for meters to be installed in their premises within 10 working days of making payment to MAPs in accordance with section 18 (3) of the MAP Regulations 2018.

    MAPs shall charge a maximum of N36,991.50 for single phase meters and N67,055.85 for three phase meters.  These costs are inclusive of supply, installation, maintenance and replacement of meters over its technical life.