By BUdo
The Nigerian Electricity Regulatory Commission (NERC) says about N28 billion has been approved for the electricity distribution companies (DISCos) to facilitate the procurement and installation of smart meters for unmetered Bands ‘A’ and ‘B’ customers in the country.
The Commission said in its latest Order on the Operationalisation of “Tranche B” of the Meter Acquisition Fund” scheme that the DIScos have been handed a deadline up to December 31, 2025 to complete the installation of prepaid meters under the newly approved tranche B Meter Acquisition Fund (MAF) scheme.
The Order, dated September 30, 2025, was jointly signed by the NERC Vice Chairman, Musiliu Oseni and the Commissioner, Legal, Licensing, & Compliance, Dafe Akpeneye.
The latest funding under tranch B of MAF scheme followed the first tranche of N21 billion released to the DisCos in April 2024, out of the N21,864,851,725 accrual, for the procurement of meters under the first tranche of the MAF scheme.
The Commission said the approved use of the first tranche disbursement from the accrued amount apportioned pro rata to the contributions of the DisCos, for the procurement and installation of meters under Tranche A of the MAF scheme, which concluded on June 30, 2025.
Details of the NERC Order said while the Nigerian Electricity Supply Industry (NESI) was expected to mobilise significant capital investment for metering through the revenue streams created under the MAF framework, there was an urgent and compelling need to accelerate the closure of the metering gap for all customers currently classified under Tariff B and A, to safeguard revenue protection and enable effective demand-side management.
DisCos, the Order said, shall utilise N28billion only of the MAF scheme for Tranche B apportioned in accordance with their respective contributions as at the July 2025 market settlement and detailed in Schedule 1, for the procurement and installation of meters for unmetered Band ‘A’ and ‘B’ customers within their franchise areas.
The Order indicated that all the meters to be procured and installed under the MAF framework shall be provided at no cost to the customers.
To ensure the utilization of local inputs in the Meter acquisition processes by the DisCos, NERC mandated that Meter Asset Providers to, among other things, provide evidence of a Memorandum of Understanding (MoU) with a local meter manufacturer or assembler for the fulfilment of a minimum 30 percent local content threshold.
Also, upon securing orders for meters from DisCos, NERC said eligible MAPs shall submit evidence in support of the fulfilment of the minimum threshold of 30 percent local content; hold a valid MAP permit issued by the Commission, and submit details of proposed meter installers with valid NERC certification as a Meter Service Provider (MSP), for the installation of meters.
To avoid the prevailing controversies over relocation of meters in residential places, NERC directed that “Where a DisCo elects to move an existing customer’s connection point to a pole or high wall to ensure revenue protection, such DisCo shall bear the cost for the relocation.
NERC said the Order shall become effective on October 6, 2025 and may be amended or revoked by subsequent Orders it would issue.
To mitigate challenges faced by the DisCos in securing finance for the acquisition and deployment of meters, the Commission developed and approved the MAF to be managed by a manager under terms and conditions negotiated by the DisCos and approved by the Commission, designed to offset the impact of DisCos’ limited creditworthiness on metering deployment.
Meanwhile, the Commission has reiterated its determination to enforce the 20-hour minimum daily power supply for Band A customers.
Senior officials of the Commission who disclosed this while featuring on Electricity Town Hall, a radio programme, sponsored by the Commission said it would ensure strict monitoring, automatic compensation for service failures, and a gradual expansion of improved supply to other customer bands.
The officials who spoke on Service-Based Tariff (SBT) in the Nigerian Electricity Supply Industry (NESI) said the framework was designed to align customers’ experiences with the tariff they pay.
A Principal Manager in NERC’s Economic Regulation Division, Olisa Chukwuma, who featured on the programme said NERC designed the framework to ensure that what customers pay corresponds with the level of service they receive.
Chukwuma said the foundation of the policy was the availability of infrastructure to serve the people, adding that was the reason customers were classified into five broad categories, including Band A, which guarantees a minimum of 20 hours of supply daily; Band B 16 hours; Band C 12 hours, Band D 8 hours, and Band E 4 hours.”
Also, Chukwuma said while the band structure was introduced in 2020, public interest only grew in 2024 when the differences between Band A and other categories became more apparent.
He encouraged customers to verify their service bands through their electricity distribution companies’ (DisCos) websites.
“It’s now mandatory for all DisCos to have a portal where customers can input their meter or account numbers to see their feeder details and service band. This ensures transparency and helps customers monitor whether they’re getting the supply hours they’re entitled to.”
In his contribution, a Senior Manager in NERC’s Eonomic Regulation Division, Abdulaziz Aloba, said the Commission tracks DisCos’ performance daily and applies sanctions where necessary
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“If you’re a Band A customer, you are expected to get an average of 20 hours of supply daily in a month. Where a DisCo fails to meet that, customers are automatically compensated.
