New Telegraph

Paying higher bills amidst metering deficit

The November 1 commencement of new electricity tariff implementation by the 11 distribution companies (DisCos) in Nigeria has brought back the demand for the 10 million metering deficit to be bridged. ADEOLA YUSUF reports

 

Eectricity consumers in Nigeria will begin to pay more as distribution companies (DisCos) on November 1 began the implementation of Multi-Year Tariff Order (MYTO), which will lead to surge in bills to as high as 59 per cent.

 

The implementation of tariff review came on Sunday, November 1, a day the power sector’s privatisation through sale of Power Holding Company of Nigeria (PHCN) assets clocked seven years.

 

The government had through the Nigerian Electricity Regulatory Commission (NERC) suspended thè MYTO implementation in the wake of threat of industry action by organised labour unions on September 1, 2020.

 

The suspension, which started with two week but later extended for one week, is over, as suggested by Abuja Electricity Distribution(AEDC), which confirmed it had on Sunday, Novemeber 1, begun the implementation of the new tariff.

 

Wide metering gap

 

The electricity smart metering deficit rocking Nigeria had surged by 3.25 million in the last seven months.

 

Managing Director of Nigeria’s biggest meter manufacturer, Mojec International Limited, Ms. Chantelle Abudu, who revealed this in Lagos, declared that the gap, which stood at 6.75 million as of March, 2020, was now 10 million.

 

Going ahead with new MYTO

 

Though other DisCos initially kept mute on the move, New Telegraph gathered that all of them have begun the implementation of the new MYTO on November

 

1.
“The have been given a green light by the regulator, Nigerian Electricity Regulatory Commission (NERC),” a source at NERC told this newspaper on Sunday.

 

The affected DisCos are Abuja Electricity Distribution Company (AEDC), Ibadan Electricity Distribution Company (IBEDC), Ikeja Electric, and Eko Electricity Distribution Company (EKEDC).

 

Others are Port Harcourt Electricity Distribution Company (PHEDC), Benin Electricity Distribution Company (BEDC),  Kano Electricity Distribution Company, Kaduna Electricity Distribution Company, Yola Electricity Distribution Company and the Enugu Electricity Distribution Company.

 

They neither share this on any of their official channels nor reply to New Telegraph enquiries.

 

Sources at four of the DisCos, however, confirmed that the implimentation cut across all the 11 power utility firms.

 

“Everyone is just being careful. We have some DisCos that supply to areas that are volatile and you will not expect them to be carefree about issuing official statement fast on this issue,” one of the officials said.

 

The AEDC, however, stated this categorically in a statement, noting that it had “effected the revised service tariff with effect from Nov.1.”

 

AEDC General Manager, Corporate Communication, Mr Oyebode Fadipe, said in a statement in Abuja on Sunday: “This is to inform our customers that with effect from Nov.1, AEDC has effected a revised Service Reflective Tariff as approved by the regulatory agency.”

 

Fadipe said that customers on the pre-paid platform would be the first to experience the revised tariff when they vend as from Sunday, Nov. 1.
“While the revised tariff will reflect in the bills for customers on the postpaid platform when they receive their electricity bills.

“The tariff is divided into five bands and based on hours of supply to the customers.

 

“While customers on bands D and E have their tariff frozen, those on bands A, B and C will see some level of reduction in their tariff as they vend.

 

”The AEDC assures its customers that it will, in line with the spirit and letter of the service reflective tariff, ensure that all customers receive quality service,” he said.

 

He said that the AEDC was also committed to the improvement of service to customers in all its franchise area.

 

“We, however, appeal to customers to please see this tariff regime as an opportunity for them to join hands with AEDC to speed up the process of improving the quality of service in the  Nigerian power sector,” he said.
Fadipe said that the table of the payment for the new tariff would soon be released.

 

It would be recalled that the the Federal government began the full privatisation of oower sector through the sale of PHCN assets on November 1, 2013.

 

Closing the metering gap

The Federal Government has, in collabodation with four distribution companies, began the first phase of six million smart meters distribution but Abudu told New Telegraph on the sideline of the programme in Lagos the National Mass Metering Programme (NMMP) would carter for 60 per cent of the shortfall.

 

She had earlier said during a press conference in March this year that the metering gap figure shot up from the 4.5 million it was in 2015 to 6.75 million.

 

Noting that to close the metering gap is one of core issues rocking the electricity sector, Abudu maintained that her company alone is shouldering the responsibility of supplying about 77 per cent of the country’s smart meter needs within a three- year window.

 

Mojec smart metering projects, she said, cover eight out of the 11 electricity distribution companies in Nigeria, noting that the company has now expanded its operations to cater for this and to include solar power solutions to individuals and business owners.

 

“In 2015, the smart metering gap in Nigeria was about 4.5 million. This gap is now 6.75 million as at today,” she said in March.

 

“We knew CAPMi scheme could not close the metering gap and this led to the Meter Asset Provider (MAP) scheme,” she added.

 

Expressing optimism that the new scheme would provide tremendous help to bridge tre metering gap, Abudu said at the wekeend; “the National Mass Metering Programme (NMMP) is a laudable programme which we must all thank the Federal government  for.”

 

 

Benefits of NMMP

 

The Eko Electricity Distribution Company (EKEDC), it would be recalled, rolled out 100,000 pre-paid meters for electricity consumers under its areas of franchise in the first phase of the NMMP. Ikeja Electric also rolled out 106,000 meters same day.

 

Managing Director and Chief Executive Officer of the company, Engineer Adeoye Fadeyibi, declared in a speech that with the NMMP scheme, “we can begin to say we are on a path to better days ahead.”

 

sThis is because, according to Fadebiyi, in the “next 18-24 months, Over six million meters will be distributed across households in the country.

 

“And for us at Eko, we will be rolling out over 100,000 meters in the next few weeks in the first phase of the programme.

 

“Our choice of Surulere as the first point of call is a show of commitment and appreciation to our teeming customers in the axis for their continuous support and understanding over the years.

 

“Asides that the programme is designed to supply the much-needes smart meters to Nigerians, it helps to create hundreds of thousands of direct and indirect jobs for Nigerian youths.

 

“At Mojec International, a lot of our children who just graduated as engineers from universities are being engaged productively and this has a multiplier effect on the country’s economy.”

 

To help in closing this wide metering gap, Abudu said her firm secured supply contracts with eight DisCos – AEDC, EKEDC, Ikeja Electric, IBEDC, BEDC, JEDC, EEDC and PHEDC – to supply and connect products for their customers.

 

Past efforts on metering gap

 

It would be recalled that the government, following the Friday, November 1, 2013, handover of Power Holding Company of Nigeria (PHCN) assets to new investors, has been working hard to bridge the metering gaps.

 

While programmes like CAPMI and Meter Asset Providers (MAP) were introduced, the gap, it appeared have not bridged and this, according to government, informed the decision to begin the NMMP, which was flagged off at Eko Electricity Distribution Company (EKEDC), Ikeja Electric; Kano Electricity Distribution and Kaduna on Friday, October 30, 2020.

 

Last line

The review of MYTO is a necessity, taking into consideration the contractual provisions and economic needs for it. However, its implementation, when the metering gap remains huge, is unfair to millions that are yet to be properly metered.

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