NERC orders DisCos to reimburse MAP customers1
The Nigerian Electricity Regulatory Commission (NERC or "the Commission") has ordered electricity distribution companies (DisCos) to reimburse customers who had paid for the acquisition of meters under the Meter Asset Provider (MAP) Scheme. According to number 31 of the Frequently Asked Questions on NERC's website, the Commission has recently released an Order for the commencement of repayment of the cost of meters under MAP to customers. Therefore, all customers who paid for meters under the MAP Scheme shall be eligible for the repayment through energy credits. The effective date noted by the NERC for commencement of the repayment is 1 April 2023.
The Meter Asset Provider Regulation (the Regulation), which became effective on 3 April 2018, provided for the supply, installation and maintenance of end-user meters by other parties approved by the Commission. The main objective of the Regulation was to address the metering gap, minimise energy theft and improve collection in the sector.
Section 8(f) of the Regulation provides that DisCos are obliged to reimburse customers who pay for meters under the MAP Scheme through equal instalments of energy credits, at the time of vending, with the cost of the meter amortised over a maximum period of 36 months, i.e., 3 years. This also applies to upfront payment made by customers upon commencement of the MAP framework in 2018.
Based on the Regulations, the DisCos should have commenced the repayment of the cost of the meters purchased under the MAP Scheme to the relevant customers through energy credits over the period approved by the Commission. However, it was noted that most customers are yet to receive the cost reimbursements, primarily due to the difficult financial positions of most DisCos. NERC has therefore, through the recent Order, revised the commencement date and reimbursement period to 1 April 2023 and 10 years respectively. The Commission noted that the revision of the reimbursement timeline and tenor was based on their evaluation of the DisCos financial positions and aligns with the average useful life of pre-paid meters and the current term sheet adopted by the Central Bank of Nigeria and other financial institutions for meter acquisition loans. This revision will also ensure fairness, transparency and accountability of the metering process under the MAP framework and provides a fair mechanism for the reimbursement of meter costs to customers under the Scheme.
WAPP appoints Transcorp Power as an Executive Board Member2
Transcorp Power Limited (TPL or the "Company"), one of the power subsidiaries of Nigeria's leading conglomerate, Transnational Corporation Plc (TRANSCORP), has been appointed a member of the Executive Board of the West African Power Pool (WAPP). The appointment was announced at the 18th session of the WAPP general assembly held on November 10, 2023, in Nouakchott, Mauritania.
See full article here: Power Sector Update Q1 updates.pdf
Footnotes
1. https://theelectricityhub.com/nerc-orders-discos-to-reimburse-map-customers/
2. https://theelectricityhub.com/wapp-appoints-transcorp-power-as-executive-board-member/
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