Don't Miss


Home   >   Business   >   Industries   >   Energy   >   DISCOs Need N170bn to Provide Adequate Meters

DISCOs Need N170bn to Provide Adequate Meters

By on December 20, 2012

About 2.8 million customers still do not have meters, six months earlier NERC ordered electricity distribution companies to provide meters to all consumers within 18 months.

Research has shown that the sum of N170bn will be needed to distribute meters to all electricity customers.

During a presentation at a workshop on power sector post privatisation agenda in Abuja on Wednesday, the Senior Manager, Market Analysis & Compliance, Market, Competition & Rates Division, NERC, Mrs. Kanneng Gwom, made this declaration.

Thorough research done by distribution companies showed that N170bn will solve the metering problem in the industry.

These figures mean that about 54.15 per cent of registered electricity customers do not have access to meters.

Gowon disclosed that funds will soon be made available to solve the problem, adding that the Act, 2005 Power Consumer Assistance Fund will soon be activated.

“The Discos have estimated that N170bn is needed to purchase 2.8 million meters required to meet the metering gap in the Nigerian electricity supply industry,” she said.

In recent times, customers have been complaining about over billing, which is caused by lack of adequate metering.

However, the Mr. Bamidele Aturu led metering committee has found that power companies prefer to give customers estimated bills, to promote estimated over billing.

Aturu, a human rights lawyer, in the course of presenting his report said his committee has discovered that power companies have refused to supply meters to customers, even when they have them in stock.

Aturu had said, “It was discovered that in most of the Discos, even though meters were in stock, customers existed who had paid for years and yet were not supplied any. This was confirmed when customers presented receipts of payment upon the declaration of some of the CEOs of their readiness to metre within a week, those customers with evidence of payment. With this revelation, it shows that meters are not as scarce as the CEOs widely alleged.

“Sharp practices and inefficiencies are the hallmarks of the metering of the system, from ageing power plants and terrible transmission lines to more importantly, rampant corruption and poor collection rates.

“Customers were of the view that with the poor supply of electricity in the country and gross inefficiency in the supply of electricity on the part of the Discos to curtail operational losses, estimated billing remains the only option for the Discos.”

She said, “The Discos, based on the reactions from customers, have identified areas of concern for the commission to make adjustments. The commission has ongoing discussions with all the Discos on the effect of the implementation of the Multi Year Tariff Order II (MYTO II).

Gwom said the MYTO II program took off in June but the commission gave three months to get customer reactions. .

She said, “The Discos, based on the reactions from customers, have identified areas of concern for the commission to make adjustments. The commission has ongoing discussions with all the Discos on the effect of the implementation of the MYTO II.