Metering electricity customers across the country has remained a challenge, as the number of unmetered customers has risen to 7.3 million. The latest figures released by the Nigerian Electricity Regulatory Commission (NERC) show that out of over 13.16 million registered customers, the electricity distribution companies (DisCos) have been able to meter only 672,539 customers.
This reflects the slow-paced metering efforts by the DisCos, leaving a significant number of customers heavily reliant on the controversial estimated billing system. NERC’s 2023 Annual Report was released in Abuja on Monday.
As of December 31, 2023, only 5,842,726 (44.39%) of the registered 13,162,572 customers in the Nigerian Electricity Supply Industry were metered. DisCos installed 672,539 end-use customer meters in 2023. A total of 25,847 meters were installed under the National Mass Metering Program (NMMP) framework, while 585,265 meters were installed under the Meter Asset Provider (MAP) framework. Furthermore, 6,912 meters were installed through the Vendor Finance Metering framework, and 53 end-use customer meters were installed through the DisCo Financed framework.
Industry experts have raised concerns that the slow pace of metering could worsen billing disputes and customer dissatisfaction. Meanwhile, electricity subsidy payments dropped to ₦151.30 billion during the year, indicating a 17.7 percent decline from 2022.
The report stated, “A Minimum Remittance Obligation (MRO) adjusted invoice of ₦858.03 billion was issued by Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator (MO) for energy costs and administrative services to DisCos in 2023. The DisCos remitted a total of ₦706.73 billion, resulting in a deficit of ₦151.30 billion during the year. Based on this, the gross DisCo remittance rate to the upstream segment for 2023 was 82.37 percent.”
According to the report, the federal government is set to pay approximately ₦180.8 billion in electricity subsidies to power consumers in Bands ‘B’ to ‘E,’ whose tariffs have remained frozen since December 2022, based on reports from the Federal Capital Territory (FCT). Regarding the subsidy payments, NERC has approved ₦26.4 billion for Abuja consumers, ₦23.76 billion for Ikeja DisCo, ₦22.21 billion for Ibadan DisCo, ₦19.92 billion for Eko DisCo, and ₦14.87 billion for Benin DisCo this month.
In the September subsidy cycle, Enugu Distribution Company (DisCo) is set to receive ₦14.61 billion, while Port Harcourt DisCo will be allocated ₦13.45 billion. Kaduna DisCo will benefit from ₦13.14 billion, Kano DisCo will receive ₦12.96 billion, and Jos DisCo will be entitled to a subsidy of ₦11.68 billion. Yola DisCo is slated to receive ₦8.06 billion in this round of disbursements.
“In line with the federal government’s policy direction on electricity subsidies, the allowed tariffs for Bands B-E customer categories shall remain frozen at the rates payable since December 2022, subject to further policy direction from the government,” NERC stated.
Additionally, NERC has imposed fines totaling ₦8.3 billion on the country’s 11 DisCos for overcharging customers and has directed the DisCos to compensate affected consumers for improper billing. These developments were outlined in the September 2024 Supplementary Order of the Multi-Year Tariff Order (MYTO) of 2024, which was issued yesterday in Abuja by the power sector regulator, led by Sanusi Garba.
