Wednesday, 15 May 2013

Govt orders DISCOs to supply meters to customers



Amadi
WORRIED by the disharmony in the state of meters supply to electricity consumers in the country, the Nigerian Electricity Regulatory Commission (NERC) has ordered distribution companies (DISCOs) in the country to commence immediate supply of meters to those who had previously made payments
The Commission has also signed an order mandating the distribution companies to supply meters paid for by customers dating back to January 2011.


Announcing the development in Abuja yesterday, Chairman of NERC, Dr. Sam Amadi, noted that though the order would ensure meter availability to all those who paid for them from January 2011, consumers who made payments before then but were yet to receive meters would also have their cases addressed.
His words: “It is regrettable that customers paid for meters and were not supplied with same months even years after. This is a double jeopardy considering that meters ought to have been supplied to them free once they paid bills. The Commission had to take January 2011 as deadline for a number of reasons. Nevertheless we are working on measures to ensure that customers who paid before January 2011 are metered within the shortest possible time”.
Meanwhile, the much-awaited new metering scheme has finally kicked off in Abuja. The scheme, known as Credit Advance Payment for Meter Installation (CAPMI) is expected to immediately facilitate the deployment of meters to electricity consumers and check ‘crazy bills’ following the failure of the ‘free meters’ scheme announced in June last year by the Nigerian Electricity Regulatory Commission.
The Presidential Action Committee on Power (PACP), chaired by President Goodluck Jonathan, had early March endorsed it as an alternative funding mechanism for pre-paid meters in the country and had directed the Nigerian Electricity Regulatory Commission (NERC) to commence immediate implementation.
Amadi said the new metering scheme kicked off yesterday with an official order from NERC mandating the electricity distribution companies (DISCOs) to commence immediate implementation
“CAPMI came about due to the slow pace of customer metering by the DISCOs, as well as the high level of complaints received from customers and dissatisfaction with the current estimated billing practices,” he said.
NERC said CAPMI provides a platform for willing customers to pay the cost of the meter into a dedicated account jointly managed by the DISCO and meter Vendor/Installer. Once payment has been effected, the customer will have their meter installed within 45 days, by a NERC accredited vendor/installer, the Commission assured.
He said the cost of the meters was arrived at using the standard market price plus the most efficient installation costs.
His words: “The DISCOs submitted data based on costs submitted by the DISCOs during the MYTO review, as well as review of prices supplied by local manufacturers. In arriving at a list of meter Vendors and Installers of meters to partake in the CAPMI scheme, NERC followed a comprehensive due process by first advertising, and inviting the Bureau of Public Procurement (BPP) to supervise the process of certification based on the Metering Code.
“Consultations were also held with various stakeholders including preferred bidders, would-be vendors and installers and Electricity Distribution Companies (DISCOs) as well as the financial institutions, to agree on the framework and logistics of implementing the scheme. In selecting successful applicants, the Commission gave emphasis to local firms as a way of localising and promoting local content in the sector”.
NERC had in June 2012 announced that customers were no longer required to pay for electricity meters because the new tariff, at the time, had incorporated the cost of the meter in the fixed charge component of the bill.
NERC has said, however, that the new scheme was designed as an alternative for customers who are willing to advance money to their distribution companies for speedy installation of pre-payment meters.
The Commission said: “This scheme is optional and will not be imposed on customers. Only those who are willing to advance money for meters may partake in the scheme. The distribution companies are to implement this scheme until the core investors take over, expectedly by the third quarter of 2013.”