Govs Push for 'No Meter, No Power' Policy

Governments Support the “No-Meter, No-Service” Electricity Program

Nigerian governors support 'no-meter, no-service' electricity policy, urging federal government to address metering issues and provide low-cost funding for metering schemes to close the metering gap and make sub-national markets viable.

Governors in Nigeria have encouraged the federal government to address the metering problems in the power sector by enforcing a “no-meter, no-service” policy for all new energy connections.

A document from the Nigeria Governors' Forum titled “Development of the National Integrated Electricity Policy and Strategic Implementation Plan: Policy Recommendations by State Governments to the Federal Ministry of Power” contained this request.

The letter from state governments emphasized the critical role that electricity meters play in closing the large metering gap that exists, which is necessary for subnational markets to remain viable.

The states also contended that State power Regulatory Commissions (SERCs) ought to have the authority to choose the best meter type, technology, and configuration for use in their respective power markets.

The document read, “States believe that the provision of electricity meters to close the huge metering gap is a necessary requirement to make sub-national markets viable. However, SERCs in conjunction with the Distribution Licensees should be allowed to determine the meter technology, type and form of meters to be deployed within their State's electricity markets, taking into consideration the cost of meters, extent of the telecommunications coverage in the State, tariff methodologies adopted by the SERC (fixed tariff, time of use, etc) and metering requirement in urban and rural communities and across customer categories arising from their energy consumption.

“States are of the view that the national electricity policy should mandate an immediate ‘no-meter, no-service’ policy for all new connections, to prevent the metering gap from further increasing.”

The states also requested that the FG assist in providing low-cost, long-term funding for metering schemes. They noted that this could be done by direct loans to Distribution Licensees or by using special purpose meter finance companies or meter asset special purpose vehicle (SPV) companies to provide off-balance sheet funding.

The report also suggested that power users use prepaid meters from recognized suppliers and manufacturers who have received SERC approval.

“The Federal Government is urged to provide low-cost, long-term funding for metering schemes as direct loans to Distribution Licensees or off-balance sheet funding through special purpose meter finance companies (or meter asset SPV companies) to close the metering gap, whilst also encouraging electricity customers to directly purchase prepaid meters from accredited meter asset providers and manufacturers accredited by the SERC.

“States on their own will implement their viable metering programs and metering regulations to close the metering gap within their state electricity market,” the document revealed.