Regulator Sets December 31 Metering Deadline For Distribution Companies

The Nigerian Electricity Regulatory Commission (NERC) has given power distribution companies (DisCos) until December 31, 2025, to complete the installation of prepaid meters under the newly approved N28 billion tranche B of the Meter Acquisition Fund (MAF) scheme.

This directive is contained in a new regulatory order titled “Order on the Operationalisation of Tranche B of the Meter Acquisition Fund,” which takes effect from October 6, 2025.
The phase is the federal government’s Presidential Metering Initiative (PMI) aimed at leveraging smart metering technologies to close the metering gap and strengthen service delivery in the Nigerian Electricity Supply Industry (NESI).

The order, signed by NERC’s vice chairman, Musiliu Oseni, and Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye, was issued on September 30, 2025.
According to the order, the funds drawn from market collections and apportioned among the DisCos based on their respective contributions are to be used for the procurement and installation of meters for all unmetered Band A and Band B customers across the country.

Under the new framework, NERC said all meters procured and installed through the MAF will be provided at no cost to customers.

The Commission explained that the Tranche B initiative builds on the first tranche of N21 billion, which was concluded on June 30, 2025.

“The new phase aims to accelerate the closure of Nigeria’s metering gap, currently estimated at over seven million customers, while enhancing revenue protection and demand-side management for DisCos”, the commission stated.
NERC directed all DisCos to conduct transparent procurement processes within 10 days of the order’s commencement and to submit their selected Meter Asset Providers (MAPs), along with detailed meter inventory, within 15 days for regulatory approval.
It further mandated that selected MAPs must deliver 100 per cent of the contracted meter volumes within seven days of receiving NERC’s “No-Objection” approval.
“Failure to meet the delivery timeline would open the opportunity for other MAPs to supply the outstanding quantities.

“Payment to MAPs will be made in two tranches, 60% upon delivery of verified meter stock, and the remaining 40% after full installation.

“To ensure accountability and transparency, DisCos are required to file audited performance reports under NERC’s Uniform System of Accounting, while both DisCos and MAPs must comply fully with the Fund Manager’s operational guidelines”, NERC stated.

The Commission warned that any DisCo that fails to provide network clearance or accurate customer data necessary for timely meter installation would be penalised, with deductions made from its approved administrative operating expenditure.