Periodic Tariff Reviews: Stakeholders Address Need To Bridge Yawning Metering Gap

Given the existing policy backing periodic review of electricity tariff under the Multi Year Tariff Order (MYTO) regime, key stakeholders in the industry have called for sustained metering exercise to close about 7 million unmetered customers according to existing data from the Nigeria Electricity Regulatory Commission, NERC.

Speaking on the planned tariff hike, Engr. Kola Balogun, CEO, Momas Electricity Meters Manufacturing Company Limited, said that if raising tariff will drive investment recovery and generate jobs it should be encouraged, but it is important that the power sector downstream is properly balanced.

Balogun, told our Correspondent that the downstream grid supply system is a mix-breed where we have both metered and unmetered costumers and with estimated billing under the impending tariff structure would create a whole lot of disparity where those without meter would pay exorbitantly.

According to him, liberalizing customer metering would bring immense benefits to the NESI and also to electricity customers who suffer the twin effect of poor services and high estimated billing. 

Balogun, said the first benefit of the liberalization is that Distribution Companies, (DisCos) can increase their allowable capex requirement and deploy more investments to network improvements and reducing technical losses, and the metering gap would be closed faster as customers would be compelled to procure their meters if they are to continue to enjoy electricity services.

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More importantly, he said  there would be greater customer satisfaction and willingness to pay for electricity services by customers. 

He added that liberalizing customer metering by de-coupling the cost of electricity meters from energy tariffs and allowing customers directly procure their meters as part of their connection cost to the electricity grid is the surest way to finally address the metering gap both now and in the future. 

On its part, MOJEC international said it has sustained its strategy to ensure more Nigerians under the estimated billing bracket are metered.

The organization in partnership with the Federal government under the National Mass Metering Programme (NMMP) and the MAP initiative with Nigerian Electricity Regulatory Commission (NERC) has provided meter assets and installations for Nigerians through respective DisCos ensuring that the average Nigerian household pay for only electricity they use while also securing funds for the DISCOs.

According to Ms Chantelle Abdul, Group Managing Director (GMD) and Chief Executive Officer (CEO) of MOJEC International, ‘’Our motivation and goal at Mojec is to help the electricity sector achieve its potential. When we first came into the sector, 80 per cent of Nigerians did not have meters, and today we have significantly contributed to reducing that to at least 50 per cent.

As a developing economy, we understand the meter needs will continue to grow, and as a result, we have invested in research and development that not only designs but also produces meters that speak to peculiar issues in the ecosystem. We have meters for needs that are specific to Nigeria and other African countries. Today, Mojec is getting Nigeria metered, and it is amazing the results we have helped the sector achieve so far.’’

The Meter Assets Providers have also written to the Regulators to make a case for their hitherto inability to source foreign exchange from the official sources. 

Their umbrella association also clearly stated that if things continue this way, they would not be able to continue providing Meters under the MAP program, unless prices of Meters are duly reviewed, he said.