Nigerians bear N1tr metering burden as CBN, W’Bank backpedal

GUARDIAN 

• Corruption stalls CBN, W’Bank deal
• Stakeholders call for metering subsidy amidst high price
• Worries over calibration failure, faster reading as meters undergo upgrades

Amidst a harsh economic reality and the gross failure of the Nigerian Electricity Supply Industry (NESI) to deliver basic services, it appears that the masses may have to shoulder the responsibility of providing electricity meters worth a staggering N1.005 trillion.

With hard-to-implement refundable policies amid weakening disposable income of consumers, the prevailing situation comes on backdrop of the Federal Government’s poorly planned National Mass Metering Programme, which has faced sustainability challenges due to allegations of greed and corruption even as the programme, supported by the World Bank and the Central Bank of Nigeria (CBN), now faces fresh hurdles.

One of these hurdles pertains to the planned distribution of 1.2 million meters funded by the World Bank. Unfortunately, a deadlock between the apex bank and the Meter Manufacturers and Assemblers Association of Nigeria (MMAAN) has forced the World Bank to reconsider its approach.

With the surge in the price of meters, an additional N40.8 billion would now be required for the project to proceed.

As the planned upgrade of existing five million meters by the Distribution Companies (DisCos) rapidly approaches, concerns have also arisen regarding calibration issues that could cause these meters to read consumption at a faster rate as stakeholders questioned the capacity of Nigeria Electricity Management Agency (NEMSA) to guarantee that the masses won’t be short changed in the meter upgrade which is a global standard.

Highlighting the persistent metering problems in the nation’s power sector since privatization, which have worsened liquidity and deprived consumers of transparent billing, NEMSA had admitted that it received a series of complaints after the deployment of the first phase of NMMP about fast-reading meters. Although the agency had insisted that the upgrade would be strictly monitored for safety and quality assurance.

Regrettably, only four DisCos have successfully metered at least 50 percent of their consumers, while some DisCos have achieved a mere 19 percent metering rate. Out of the 12,378,243 registered customers in the country as of March this year, only 43.31 percent (5,360,434) of them have received meters. This implies that over 7 million consumers are being billed arbitrarily.

The cost of meters has also surged, with a single-phase meter now priced at N81,975.16, up from the previous price of N58,661.69. Similarly, the cost of a three-phase meter has increased to N143,836.10 from N109,684.36. As a result, the masses are facing an expenditure value ranging from N574 billion to N767.2 billion, depending on the type of meter they require to bridge the metering gap.

The Central Bank of Nigeria (CBN) appears to have been forced to withdraw the illegal freezing of 157 accounts belonging to about 10 meter-producing companies that allegedly played roles in short-changing Nigerians during the National Mass Metering Programme, which was introduced by the Federal Government, to douse tension over electricity bill increase.

While NERC disclosed that four million meters would be provided to consumers this year, the World Bank in a bid titled DREP-PPI, Credit No 9206-NG, and project identification number P172891, would have provided 1.200 million meters to kick-start the first phase of NMMP…