NERC approves N30bn fund to accelerate metering of Band A, B electricity customers

The Nigerian Electricity Regulatory Commission (NERC) has approved ₦30 billion for the third phase of the Meter Acquisition Fund (MAF) to speed up electricity meter installations for unmetered Band A customers and increase coverage among Band B consumers.

The commission also directed electricity distribution companies (DisCos) to complete all meter installations under the programme by May 31, 2027.

NERC warned that customers must not be asked to pay for meters supplied through the initiative, stressing that the programme is designed to expand access to electricity meters without placing additional financial burdens on consumers.

The regulator announced the development in Order No. NERC/2026/121, which provides for the implementation of Tranche C of the Meter Acquisition Fund.

According to the commission, the order took effect on November 2, 2026, and was made public through a statement on its official X handle on Tuesday.

The post read, “The Nigerian Electricity Regulatory Commission (NERC or the Commission) hereby informs electricity consumers and stakeholders of the issuance of Order No. NERC/2026/121 on the Operationalisation of Tranche C of the Meter Acquisition Fund, effective 2 November 2026.

“The Commission has approved N30 billion for Tranche C, to be allocated among the eleven Distribution Companies (DisCos) in proportion to their respective contributions to the Fund. The funding is intended to meter all remaining unmetered Band A customers and accelerate the metering of Band B customers, with equitable distribution across states within the respective DisCo franchise areas.”

The latest funding is part of the Federal Government’s Presidential Metering Initiative, which seeks to close the country’s persistent electricity metering gap, protect consumers from estimated billing and improve accountability in the power distribution system.

According to the order, the approved N30bn will be shared among the 11 electricity distribution companies in proportion to their respective contributions to the Meter Acquisition Fund.

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The funds will be used to provide meters for all remaining unmetered Band A customers while accelerating installations for Band B consumers. The commission also directed that the distribution should be equitable across states within each DisCo’s franchise area.

Under the arrangement, the distribution companies are required to conduct transparent procurement exercises involving eligible Local Meter Manufacturers and Assemblers and Meter Asset Providers with verified meter stocks.

NERC said it had prescribed maximum procurement prices based on the median national bid prices submitted by Meter Asset Providers during the September 2026 bidding cycle.

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The commission also introduced a two-stage payment arrangement to strengthen accountability and ensure that providers deliver the meters before receiving full payment.

Under the arrangement, 70 per cent of the contract payment will be released after verification of delivered meter stocks, while the remaining 30 per cent will be paid after the complete installation of the meters has been confirmed.

The regulator reiterated that all meters supplied and installed under the fund must be provided free of charge to electricity consumers, warning against attempts by distribution companies or their agents to sell them.

It further directed that every meter supplied under the programme must prominently display the name of the relevant distribution company, the applicable tranche of the Meter Acquisition Fund and the inscription, “NOT FOR SALE”.

“The Commission reiterates that all meters supplied and installed under the MAF programme shall be provided FREE OF CHARGE to customers. Every meter must prominently display the relevant DisCo’s name, the applicable MAF tranche and the inscription “NOT FOR SALE.

“Where a DisCo initiates the relocation of an existing customer’s connection point for revenue protection purposes, the cost shall be borne by the DisCo. The Order also provides sanctions where DisCo defaults impede meter installation,” the report added.

The order also addressed situations where distribution companies relocate customers’ existing connection points for revenue protection purposes.

According to NERC, where a DisCo initiates such relocation, it must bear the associated cost rather than transfer the financial burden to the affected customer.

The commission also provided for sanctions where defaults by distribution companies obstruct or delay meter installations, reinforcing the responsibility of operators to ensure that the programme is implemented within the stipulated period.

To prevent diversion of funds and ensure proper implementation, the regulator prescribed monitoring, reporting and evaluation requirements for the Fund Manager, distribution companies and participating meter providers.

It also directed that all supply and installation contracts executed under Tranche C must be submitted to the commission.

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