Prepaid Meter: FG approves N33bn intervention fund for Discos

The Federal Government has approved N33 billion
low interest intervention fund to support the
Distribution Companies (DISCOs) in the country to buy
meters and other electric power accessories.
Director General of BPE, Mr. Benjamin Dikki, who
gave the hint during a Radio Nigeria Live/Phone-in
Programme—Radio Link, explained that the country
needs three million meters yearly.
The move according to Dikki was aimed at bridging
the huge metering gap in the country. He said the
country had an installed power capacity of 6,000
megawatts but was generating only about 3,000 to
4,000 megawatts, noting that revenues from the 3,000
megawatts were not sufficient to support the power
infrastructure, while also assuring that when power
generation increases, the fixed charge will go.
Dikki explained that, it is the initial sacrifice
consumers had to make given the huge financial
investment made by the new power investors who are
yet to obtain adequate returns on their investments.
The BPE boss said that in line with what obtained at
the initial stages of the reform in the telecoms sector
when the cost of the Subscriber Identity Module (SIM)
cards and telephone handsets was as high as
N50,000 per SIM but has now crashed to free SIMs
with air time, “the electricity fixed charge will also
crash”.
Meanwhile the agency has said that the fixed charge
currently borne by electricity consumers in the
country would be dispensed with as soon as power
generation increases to an economically sustainable
level.
The Nigeria Electricity Regulatory Commission (NERC)
had in May, ordered Distribution Companies (Discos)
to suspend further collection of fixed charges on un­
consumed electricity if power was not supplied
continuously or cumulatively for 15 days in a month.
NERC Chairman, Dr. Sam Amadi, said that, “any
customer who experiences continuously or
cumulatively power outage for 15 days in a month will
be exempted from paying the monthly fixed charge to
the Electricity Distribution Company (Discos).”
The order, according to Amadi, who spoke to report­
ers in Abuja, took effect from May 1, 2014. He further
explained that in as much as the 15 days power
outage was not due to the customer’s disruption or
default in paying bill, the Discos shall forego monthly
fixed charge.
The decision, according to him, was based on the com­
mission’s 2005 Act, Section 32 D and F, while he
stated that the NERC has decided that the fixed charge
remains an essential component of the bill. It has,
however, reviewed its continued reflection in the tariff
in the payment of the fixed charge in the light of sev­
eral complaints by consumers, particularly the
payment of the fixed charge when energy is not
delivered to them.

Categories: