Fashola makes a U-turn, says consumers can pay for meters

* Discos silent on independent metering

The Federal Government has said that it will not oppose the
wishes of electricity consumers that are willing to pay for meters
from their distribution companies based on agreement between both
parties as endorsed by the power sector regulator.

But in April last year, the Minister of Power, Works and
Housing, Mr. Babatunde Fashola, had directed the Nigerian
Electricity Regulatory Commission to immediately wind down its
alternative metering scheme, the Credited Advance Payment for
Metering Initiative, which allowed customers to pay for electricity
meters from their respective Discos.

However, in his speech at the 18th monthly power sector meeting,
which was made available to our correspondent in Abuja on Tuesday,
Fashola stated he had been receiving several requests from the
Discos that their customers still wanted to pay for meters.

He said, “Please recall that government had in the past
attempted to intervene in meter supply through CAPMI, which
ultimately I decided we should wind down because of the distrust
and disaffection it was creating between consumers and Discos with
government caught in the middle with numerous petitions by
customers who paid for meters that were not delivered within the
approved time.

“Some Discos have come back to say that their customers still
want to pay for meters and they can reach agreements with them on
how to pay for it. Government will not stand in the way of such an
agreement. It is consistent with the intent of privatisation
envisioned by the Electric Power Sector Reform Act or at least it
does not violate the Act.”

He added, “What I will reiterate is that the Discos have the
obligation to meter customers because they are the ones who charge
for electricity which must be measured. If the customers and the
Discos reach an agreement between themselves, where the customer
assumes the responsibility of the Disco of his own free will and
NERC sanctions this agreement, then so be it.

“The difference between this kind of agreement and CAPMI is that
it is not a government initiative. However, through NERC,
government will monitor and regulate to ensure that Discos do not
use this as an excuse to abdicate their responsibility to provide
meters.”

Fashola said in addition to this kind of agreement, the
government had decided to optimise the EPSRA provision to
democratise access to meters, starting with the N39bn that would
serve as a loan to the meter providers.

He stated that while it was true that the Discos had the
obligation to meter customers, the law did not vest a monopoly of
meter supplies, or even retail sales on the Discos.

The minister said anybody who qualified under safety regulation
by NEMSA and under licences issued by the NERC could supply meters
to customers under conditions stipulated by the regulator.

“In other words, meter supply is an open but regulated business.
You need a licence from NERC to undertake it. You need to comply
with testing and safety standards of NEMSA to produce, import or
install it but it is not a monopoly for Discos alone,” Fashola
said.

Meanwhile, the Discos on Tuesday chose to keep mum on the
statement by Fashola that they did not have the monopoly of
metering electricity consumers.

The Chief Executive Officer, Association of Nigerian Electricity
Distributors, an umbrella body for the Discos, Mr. Azu Obiaya, told
our correspondent on Tuesday that the association would not make
any comment on the minister’s statement.

“We are taking a look at what the minister has done and if it is
appropriate for us to comment on it, we will,” he added.

The Chairman, Network of Electricity Consumers Advocacy of
Nigeria, Mr. Tomi Akingbogun, said, “I think it is a technical
statement by the minister, which might be difficult to implement
because, for example, unless I am able to connect directly to the
Transmission Company of Nigeria and have my electricity from them,
bypassing the Disco, that’s the only time I can install my own
meter.

“You can’t just go to a Disco and say you have your own meter
and they will accept that meter. I don’t know if the Discos would
be willing to liaise with any investors interested in going into
metering of customers.”

According to Akingbogun, the Discos must, by law, provide
transformers and any other equipment so that the consumers don’t
have to pay for them.

“Ideally, if the meters are calibrated and good, and the Discos
are not making money from the meters, they should be able to accept
any standard meter to be connected. But they are not allowing that.
All over the world, most electricity companies will not want you to
bring in any meter,” he said.

* Discos silent on independent metering

The Federal Government has said that it will not oppose the
wishes of electricity consumers that are willing to pay for meters
from their distribution companies based on agreement between both
parties as endorsed by the power sector regulator.

But in April last year, the Minister of Power, Works and
Housing, Mr. Babatunde Fashola, had directed the Nigerian
Electricity Regulatory Commission to immediately wind down its
alternative metering scheme, the Credited Advance Payment for
Metering Initiative, which allowed customers to pay for electricity
meters from their respective Discos.

However, in his speech at the 18th monthly power sector meeting,
which was made available to our correspondent in Abuja on Tuesday,
Fashola stated he had been receiving several requests from the
Discos that their customers still wanted to pay for meters.

He said, “Please recall that government had in the past
attempted to intervene in meter supply through CAPMI, which
ultimately I decided we should wind down because of the distrust
and disaffection it was creating between consumers and Discos with
government caught in the middle with numerous petitions by
customers who paid for meters that were not delivered within the
approved time.

“Some Discos have come back to say that their customers still
want to pay for meters and they can reach agreements with them on
how to pay for it. Government will not stand in the way of such an
agreement. It is consistent with the intent of privatisation
envisioned by the Electric Power Sector Reform Act or at least it
does not violate the Act.”

He added, “What I will reiterate is that the Discos have the
obligation to meter customers because they are the ones who charge
for electricity which must be measured. If the customers and the
Discos reach an agreement between themselves, where the customer
assumes the responsibility of the Disco of his own free will and
NERC sanctions this agreement, then so be it.

“The difference between this kind of agreement and CAPMI is that
it is not a government initiative. However, through NERC,
government will monitor and regulate to ensure that Discos do not
use this as an excuse to abdicate their responsibility to provide
meters.”

Fashola said in addition to this kind of agreement, the
government had decided to optimise the EPSRA provision to
democratise access to meters, starting with the N39bn that would
serve as a loan to the meter providers.

He stated that while it was true that the Discos had the
obligation to meter customers, the law did not vest a monopoly of
meter supplies, or even retail sales on the Discos.

The minister said anybody who qualified under safety regulation
by NEMSA and under licences issued by the NERC could supply meters
to customers under conditions stipulated by the regulator.

“In other words, meter supply is an open but regulated business.
You need a licence from NERC to undertake it. You need to comply
with testing and safety standards of NEMSA to produce, import or
install it but it is not a monopoly for Discos alone,” Fashola
said.

Meanwhile, the Discos on Tuesday chose to keep mum on the
statement by Fashola that they did not have the monopoly of
metering electricity consumers.

The Chief Executive Officer, Association of Nigerian Electricity
Distributors, an umbrella body for the Discos, Mr. Azu Obiaya, told
our correspondent on Tuesday that the association would not make
any comment on the minister’s statement.

“We are taking a look at what the minister has done and if it is
appropriate for us to comment on it, we will,” he added.

The Chairman, Network of Electricity Consumers Advocacy of
Nigeria, Mr. Tomi Akingbogun, said, “I think it is a technical
statement by the minister, which might be difficult to implement
because, for example, unless I am able to connect directly to the
Transmission Company of Nigeria and have my electricity from them,
bypassing the Disco, that’s the only time I can install my own
meter.

“You can’t just go to a Disco and say you have your own meter
and they will accept that meter. I don’t know if the Discos would
be willing to liaise with any investors interested in going into
metering of customers.”

According to Akingbogun, the Discos must, by law, provide
transformers and any other equipment so that the consumers don’t
have to pay for them.

“Ideally, if the meters are calibrated and good, and the Discos
are not making money from the meters, they should be able to accept
any standard meter to be connected. But they are not allowing that.
All over the world, most electricity companies will not want you to
bring in any meter,” he said.