NERC Report: Nigeria’s Metering Crisis and Market Deficit of ₦151.30 Billion.
Metering Gap Continues to Widen
Despite ongoing efforts by distribution companies (Discos) in Nigeria, the metering gap remains significant. According to the Nigerian Electricity Regulatory Commission (NERC), Discos installed 672,539 meters in 2024, but 7.3 million electricity consumers remain unmetered. This issue leaves millions of Nigerians relying on the controversial estimated billing system, which often leads to inflated bills and widespread customer dissatisfaction.
The National Mass Metering Programme’s Slow Progress
The National Mass Metering Programme (NMMP), an initiative designed to address the metering shortfall, has been hampered by logistical challenges, funding constraints, and supply chain disruptions. Experts warn that unless these issues are resolved, the metering gap will continue to widen, leading to more billing disputes and customer dissatisfaction.
Industry Challenges and Consumer Frustration
Chantelle Abdul, Group Managing Director of Mojec International, highlighted the obstacles in deploying meters nationwide, including regulatory hurdles, consumer resistance, and logistical challenges. “We are navigating these challenges to ensure timely delivery and installation of meters,” Abdul said, stressing that accurate metering is essential for both customers and the power sector.
Billing Disputes and Market Deficit
Unmetered customers have long complained about estimated billing, which is often perceived as unfair. The report also highlighted a market deficit of ₦151.30 billion due to under-remittances by Discos. While Discos were billed ₦858.03 billion for energy costs and administrative services, they only remitted ₦706.73 billion.
Government Subsidies and Regulatory Actions
The federal government has committed to paying ₦180.8 billion in electricity subsidies to consumers in tariff bands B to E, whose rates have remained frozen since December 2022. In addition, NERC has fined Discos ₦8.3 billion for overcharging customers and ordered compensation for those affected.
NERC Mandates for 2024
In the latest Supplementary Order of the Multi-Year Tariff Order (MYTO) 2024, NERC directed Discos to secure at least 10% of their electricity load allocation, aiming to improve service reliability under the Service-Based Tariff (SBT) framework. NERC also outlined the distribution of subsidies for various Discos across Nigeria, with Abuja Disco receiving ₦26.4 billion, Ikeja Disco ₦23.76 billion, and Ibadan Disco ₦22.21 billion, among others.
Nigeria Social Media Reactions to Metering and Power Sector Issues
- @NkechiPowerWatch: “7.3 million unmetered customers? No wonder we’re still facing estimated billing problems. We need those meters now! #NigerianPowerSector”
- @Yusuf4Energy: “The slow pace of metering in Nigeria is frustrating. Why are we still depending on estimated bills? #MeteringCrisis”
- @TomiwaElectricity: “672,539 meters installed sounds like progress, but what about the remaining 7.3 million? We need better solutions. #PowerNigeria”
- @AishaEnergyFacts: “Mojec says they are facing challenges deploying meters, but the government needs to step up too! #NMMP #ElectricityNigeria”
- @BayoEconObserver: “NERC should push for faster metering, not just fines for Discos. 7.3 million people are still unmetered! #EnergyCrisis”
- @FatimaElectricityNG: “Still getting estimated bills after all these years? The metering gap is causing serious customer dissatisfaction. #FixTheGap”
- @ObinnaUtilityWatcher: “Discos owe ₦151.30 billion in remittances but keep overcharging customers. The whole system needs an overhaul! #PowerSectorReform”
- @FemiConsumerRights: “Finally, NERC is fining Discos for overbilling. But we need meters for everyone to stop the exploitation! #NERC #Discos”
- @ToluEnergyPolicy: “The slow progress of the NMMP is concerning. When will the 7.3 million unmetered Nigerians get their meters? #PrepaidMeterForAll”
- @KunleNigeriaEcon: “Inflated bills and power outages have become the norm. When will NERC and Discos finally get it right? #MeteringChallenge”
- @ChinweEnergyAnalyst: “Unmetered customers are stuck with inflated bills. We need more transparency and faster deployment of meters. #EstimatedBilling”
- @ZainabEnergyTruth: “Subsidies are great, but they won’t fix the fundamental issue of unmetered customers. We need a long-term solution. #NigeriaEnergy”
- @GideonPowerWatch: “7.3 million unmetered customers is a disaster waiting to happen. When will this metering issue be resolved? #ElectricityNigeria.
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