Meter asset providers, which the Nigerian
Electricity Regulatory Commission is planning to introduce into the power
sector, will be expected to supply and install meters within 21 working days of
payment at the premises of electricity customers who choose the option of
paying for the meters.
The distribution licensee (the electricity
distribution company) will own such meters and repay the customers through
energy credits over a period not exceeding five years, according to the Draft
Meter Asset Providers Regulation 2017 released by NERC.
A meter asset provider is an entity that is
granted a permit to give metering services, which may include meter financing,
procurement, meter tests, supply, installation, maintenance and replacement.
But the Association of Nigerian Electricity
Distributors, the umbrella body of the electricity distribution companies, has
raised concerns over the draft regulation.
The Chief Executive Officer, ANED, Mr. Azu
Obiaya, said, “We have seen the draft regulation and there is quite a bit of it
that we are not happy with. We have recently provided feedback to the regulator
and I believe that there is a consultation forum coming up on Monday. We will
continue to strongly convey our concerns to the regulator.”
Describing metering as a critical point in the
Discos’ revenue collection, he said, “So, you can understand that we are very
concerned about the regulation. The Discos, as part of their performance
obligations, have metering obligations. We want to be sure that whatever
arrangement that comes out will allow us to ensure revenue protection and
protect our customers.
“Meters cost money and that cost must be
recovered somewhere. So, if the meter providers will be reimbursed for the cost
of the meter, the question is: where does that money come from? Will it come
from under a tariff that is already significantly and artificially suppressed
as we speak? Somebody must pay, and clearly it is illogical to think that with
the Discos already bleeding – because they are not allowed to recover their
full costs – that you can further push them towards bankruptcy by adding
another cost that they cannot recover.”
According to the proposed regulation, the
distribution licensee (Disco) is responsible for meeting its metering targets
as stipulated by the commission from time to time, and shall procure the
services of MAP in accordance with the regulations to enable it to meet the
targets.
It said the Disco would plan and execute a
transparent and competitive procurement process to engage a qualified MAP, and
enter into a Meter Service Agreement with selected MAPs for the deployment of a
specified number of meters within the tenure of the agreement.
The power firm will develop and agree on a meter
deployment plan to meet its metering targets and provide the payment security
acceptable to the MAP in line with the terms of the MSA.
The commission said the Disco should conclude the
procurement process for the engagement of MAP within 120 days of coming into
effect of the regulations, adding that it would engage the services of a tender
auditor to assess the conduct and results of the procurement process for the
engagement of MAP.
It said, “Upon completion of evaluation of bids,
the successful bidder shall submit an application for the grant of a Meter
Asset Provider licence to the commission. The commission shall grant a licence
to the successful bidder subject to satisfactory compliance with the minimum
qualification criteria and procurement processes provided in these
regulations.”
The draft regulation said the distribution
licensee should, within 30 days of the grant of permit by NERC to the
successful bidder, issue the payment security.
“The distribution licensee shall make periodic
payments to cover the cost of meters installed by MAP as agreed by both
parties. In the event of default, MAP shall call upon the payment security
provided,” it said.
The Managing Director, Ibadan Electricity
Distribution Company, Mr. John Donnachie, said, “I don’t understand it (the
draft regulation). I don’t believe in it because metering is a key part of our
responsibility. We cannot put meters in because we don’t have a financial
foundation to go and borrow money to put the meters in. We have to work with
the government to solve the problem, not bring in another party to confuse the
issue further.”
According to the proposed regulation, where the
customer chooses the option of self-financing of the meter, the distribution
licensee shall provide the customer with authorisation specifying the amount to
be paid for installation of a meter after inspection of the customer’s
premises.
The commission said every customer should have a
meter installed to ensure proper energy accounting, adding, “If a metering
system fault occurs, MAP shall provide urgent metering services to repair or
replace the meter and its accessories within two working days as stipulated in the
metering code.”
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