Nigerians to pay more for electricity as NERC approves ‘service charge’


The Nigerian Electricity Regulatory Commission (NERC) has disclosed that prepaid meters will soon flood the market with the licensing of 87 meter asset providers (MAPs).
This is expected to lead to increase in the amount that electricity consumers in the country who get new meters under the latest regulation would pay.
Recently, NERC’s commissioner, legal, licensing and compliance, Mr. Dafe Akpeneye, had unveiled the new regulation in Uyo, Akwa Ibom state.
He explained that MAPs will be independent providers approved by NERC but contracted by the DisCos “to bridge the metering gap”.
They would be saddled with the responsibility of providing meters and replacing faulty devices within 48 hours.
An analysis of the Meter Asset Provider Regulations 2018 (Regulation No Nerc-R-112) by TheCable, an online news medium, shows that would be beneficiaries will pay a certain amount as monthly service charge.
Under chapter iv, section 10 (“Rights of Distribution Licensees”), subsection 5, the regulation states: “The Distribution Licensees shall include a metering service charge as a clear item on the billing of its customers provided with meters under an MSA with MAPs and shall be separate from the energy charge.
“The metering service charge shall be based on the outcome of the procurement process for the MAP and subject to the approval of the Commission.”
In 2015, NERC had outlawed “fixed charge” from tariffs, abolishing the monthly average of N750 added to customers’ bills whether or not they use electricity. However, this was accompanied by a slight increase in tariff.
NERC’s latest regulation came into effect on March 8, 2018 and will be enforced by the commission from April 3, 2018.
The objective, according to NERC, is to provide standard rules to “encourage the development of independent and competitive meter services, eliminate estimated billing practices, attract private investment to the provision of metering services in NESI, close the metering gap through accelerated meter roll out and enhance revenue assurance in NESI”.

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