The rollout of electricity meters across the country by the newly licensed Meter Asset Providers (MAP) has fueled fears in some quarters that the Nigerian electricity consuming public would be further exploited by these service providers. In this report, Ibrahim Apekhade Yusuf examines the issues.From the look of things, the countrys intractable energy crisis which has inflicted untold pains on many Nigerians is not about to be settled, if feelers in some quarters is anything to go by. Of course, the major factor which remains contentious is the issue of provision of electricity meters. Granted that meters remain one of the most essential commodities required to power electricity, the increasingly high cost of procuring them has been a hotly debated issue among the stakeholders, especially the electricity consuming public.Crux of the matterIn its quest to bridge the yawning gap created by the Distribution Companies (DisCos), most of who could not meter the over 4.7million customers nationwide out of about 8 million customer population, the Nigerian Electricity Regulatory Commission (NERC) had unveiled new Meter Asset Providers (MAP) regulation.Subsequently the law was enacted and signed by the Vice Chairman, Garba Sanusi on March 8, 2018, granted 15-year license to the MAP to assist the 11 DisCos fast track meter installations.One of the key features of the regulation is the introduction of a Metering Service Charge which stipulates that customers who are metered under this regulation will have to pay a service charge to recover the cost of the meter in 10 years.The Commissioner, Legal, Licencing, and Compliance at NERC, Dafe Akpeneye who presented the new Meter Asset Provider (MAP) regulations at the 25th power sector meeting in Uyo, Akwa Ibom state, said the regulation will bring about over N200 billion investment within three years.It will also create jobs as we have introduced local content requirements; it is estimated that 30 per cent of all meters deployed must be procured from local manufacturers and assemblers, he had explained.Electricity DisCos shall within 120 days complete the process of engaging Meter Asset Providers based on their respective meter deployment plan and targets set by the Commission, NERC said in the statement.Modus of MAPIt may be recalled that the process of the MAP regulation began in 2018 with wide consultations in Lagos, Kano, Port Harcourt and Abuja. The fresh regulation submits that to qualify as MAP, firms would have to apply to NERC with a 10-year business plan along with other documents.The tenure of MAP Permit shall be 15 years for successful firms in the first instance, the regulation obtained by this paper read. The Commission said it will grant such permit within 21 days of the application based on criteria.A MAP will also sign a Meter Service Agreement (MSA) with a DisCo to deploy meters within a period through a secured payment plan. With the MSA, the MAP maintains the meter during the period and customers are expected to see officials of MAP doing routine checks on the installed meters rather than officials of the DisCos.Anguish over new metering costMeanwhile, a group under the aegis of Coalition for Affordable and regular Electricity (CARE) has described as unwarranted plans by the federal government to place further burden on the electricity consuming public.In a statement exclusively obtained by our correspondent, signed by its National Coordinator, Chinedu Boosah, the group noted, there is no justification whatsoever for the imposition of cost on the electricity consuming public.The newly introduced Meter Asset Provider Regulations (MAPR) is aimed at forcing electricity consumers to bear the cost of metering instead of the DISCOs. The government has licensed private companies known as MAP to issue prepaid meters to consumers as a response to the failure of the Distribution Companies (DC) to issue meters to consumers. For over a year, this policy is yet to take off because of obvious disagreement over exploitation booty amongst the profiteers (DISCOs and MAP). The federal has also earmarked N37 billion grants to the meter companies as take-off grant.While noting that the MAP will charge electricity consumers about N36,000 and N67,000 for single-phase meters and three-phase meters respectively, the ideal situation, the group maintained, Would have been the DC providing the meters at no cost to consumers but the Nigerian Electricity Regulatory Commission (NERC) and the federal government have capitulated to the demands of the DISCOs because of the unholy alliance.The current cost of the meters, CARE said, Is not affordable for the vast majority because of the poor purchasing power and poverty rate and so it will not achieve the aim of closing the meter gap let alone give meters to everyone that needs them.The Nigerian Electricity Consumers Advocacy Network (NECAN) is also not in support of the planned tariff increase.NECAN Chairman, Chief Tomi Akingbogun who spoke to some reporters said the idea of MAP is that customers should be paying for their meters. Those who cannot pay at once can pay in bits.Everybody is tired of the estimated billing method and people are finding ways of getting meters. It means that the provision of meters is very critical to most of us consumers. Now that they have introduced this, we are happy and believe every landlord will be able to install meters in their houses before customers rent it.NERC Act supporting new meter costAccording to Article V of NERC Meter Asset Provider Regulations: The current meters being installed by electricity distribution companies are not free as the current tariff being paid by all electricity customers includes a return on the investment on meter assets.The Article VI of NERC MAPR, states that The new regulation provides that customers only pay for metering service charge after the installation of a meter at their premises. DisCos shall create new tariff classes to bring this to effect.The regulation once implemented after the DisCos engage the MAP contractors from June will enable customers pay at once to get meters installed in their homes within 10 days. While many customers have lauded this development, they insist the regulation was silent about whether they will be reimbursed through energy credit for the amount they purchased the meters.The regulation stated that such customers would not pay the meter service charge but does not say if the customers will get any refund.Clarifying this in a statement recently, NERC said at present, customers are paying tariff that includes a return on investment on meter assets for the DisCos. This is so even when over 54 percent of those customers have not been metered.In a related development, President of Network for Energy Reforms, Kunle Olubiyo said the intention of the MAP regulation is to enhance metering in the Nigerian Electricity Supply Industry (NESI) to ensure revenue for the sustainability of Investment and ultimately ensure customer satisfaction.He said the lack of liquidity for DisCos has stalled investment in metering which the law will address saying, The tariff of all customers under the MAP period shall be adjusted to exclude meter cost and so they are expected to pay lower unit rates for their electricity. Olubiyo noted.As the regulation takes place, NERC has said it is expected to close the metering gap within the next three years. Its statement said the regulation was aimed at eliminating the estimated billing and its challenges in the industry.
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