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Nigeria’s Widening Metering Gap and Rising Estimated Billing Customers

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NERC's new meter pricing sparks divergent opinions among industry and consumers
Nigeria is facing significant challenges in its effort to eliminate estimated billing by the end of 2024

Nigeria is facing significant challenges in its effort to eliminate estimated billing by the end of 2024. The recent increase in the number of customers on estimated billing across the country’s electricity distribution companies (DisCos) highlights these hurdles. According to the Nigeria Electricity Report by the National Bureau of Statistics (NBS) for the first quarter of 2024, there has been a 10% quarter-on-quarter increase in estimated billing customers, widening the metering gap.

Key Findings

  • Increase in Estimated Billing Customers:
    • The number of customers on estimated billing rose from 5.83 million in Q4 2023 to 6.43 million in Q1 2024, marking a 10% increase.
    • Year-on-year, the number of estimated billing customers increased by 8%, from 5.96 million in Q1 2023.
  • Challenges and Government Subsidies:
    • The government continues to subsidize customers not on Band A, while Band A customers on estimated billing still pay based on estimation.
    • This increase highlights the persistent inability to adequately meter all customers, leading to a reliance on estimated billing.
  • DisCo-Specific Data:
    • Ibadan Electricity Distribution Company (IBEDC): Recorded the highest number of estimated billing customers at 1.41 million in Q1 2024, up from 1.37 million in the previous quarter.
    • Enugu Electricity Distribution Company (EEDC): Saw a significant increase to 765,662 customers from 709,104 in Q4 2023.

Customer and DisCo Disputes

The reliance on estimated billing often leads to disputes between consumers and DisCos. Many consumers feel that the estimates are inflated and do not reflect their actual consumption, prompting calls for more accurate metering.

Regulatory Actions

The Nigeria Electricity Regulatory Commission (NERC) fined 11 electricity distribution companies a total of 5 billion Naira for non-compliance with mandatory capping of estimated billing for unmetered customers.

Metering Progress and Challenges

  • Metered Customer Growth:
    • The report shows a modest 5% quarter-on-quarter increase in metered customers, from 5.61 million in Q4 2023 to 5.91 million in Q1 2024.
    • Year-on-year, metered customers increased by 11%, from 5.31 million in Q1 2023.
  • DisCo Challenges:
    • DisCos face financial constraints, logistical issues, and regulatory hurdles in closing the metering gap.
    • Abuja Electricity Distribution Company (AEDC): Increased its metered customers to 892,028 in Q1 2024.
    • Benin Electricity Distribution Company (BEDC): Raised its metered customers to 672,179 in Q1 2024.

Total Customer Base

The total number of customers served by DisCos in Nigeria has shown consistent growth:

  • In Q1 2024, the total customer base grew to 12.33 million from 12.12 million in Q4 2023, a quarter-on-quarter rise of 2%.
  • Year-on-year, this represents a 9% increase from 11.27 million in Q1 2023.

Notable DisCo Data:

  • Ibadan Electricity Distribution Company (IBEDC): Highest total number of customers at 2.48 million in Q1 2024.
  • Enugu Electricity Distribution Company (EEDC): Substantial customer base with 1.39 million in Q1 2024.
  • Abuja Electricity Distribution Company (AEDC): 1.46 million customers, reflecting a significant presence in the capital region.

Presidential Campaign and Policy Implementation

President Bola Tinubu’s campaign manifesto outlined plans to eliminate estimated billing and ensure all Nigerian homes and businesses are equipped with prepaid meters. Despite these intentions, the number of estimated billing customers has seen the largest growth rate both quarterly and yearly under his administration, based on data up to 2022.

Financial and Operational Impact

The rise in estimated billing has led to collection losses for DisCos. Revenue collected by DisCos dropped by approximately 1.13%, from N294.95 billion in Q4 2023 to N291.62 billion in Q1 2024. This decline underscores the financial strain on DisCos and the urgent need for comprehensive metering solutions.

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Conclusion

Addressing the metering gap requires concerted efforts from all stakeholders, including government support, investment in metering infrastructure, and improved regulatory frameworks. While there has been progress in increasing the number of metered customers, the rate of growth is insufficient to counterbalance the rapid rise in estimated billing customers. Comprehensive metering is essential for efficient billing, revenue collection, and overall customer satisfaction in Nigeria’s electricity sector.

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Downing Street Indicates UK Would Arrest Netanyahu if He Visits

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Downing Street Indicates UK Would Arrest Netanyahu if He Visits

Israeli Prime Minister Benjamin Netanyahu could face arrest if he enters the United Kingdom, following an international arrest warrant issued by the International Criminal Court (ICC), according to indications from No 10.

A spokesperson for UK Prime Minister Rishi Sunak declined to comment on the specifics of Netanyahu’s case but affirmed that the government is committed to fulfilling its “legal obligations.”

The ICC issued arrest warrants on Thursday for Netanyahu, alongside former Israeli Defense Minister Yoav Gallant, citing alleged war crimes in Gaza. As a signatory to the ICC treaty, the UK is obligated to enforce such warrants.

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Under the International Criminal Court Act 2001, the UK government must transmit ICC arrest requests to a judicial officer, who then determines whether to endorse the warrant for execution within the country.

“The government would fulfil its obligations under the act and its legal obligations under both domestic and international law,” the spokesperson said, emphasizing the UK’s commitment to its treaty obligations.

When asked if Netanyahu would be detained upon arrival in the UK, the spokesperson refrained from commenting on “hypotheticals.” However, the legal framework leaves little room for discretion if a visit occurs, given the binding nature of the treaty.

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Judge Delays Sentencing for Donald Trump for the Third Time

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Judge Delays Sentencing for Donald Trump for the Third Time

A New York judge has delayed the sentencing of President-elect Donald Trump for a third time as legal battles over his conviction remain unresolved. Trump’s attorneys continue to press for his conviction to be dismissed, citing presidential immunity and potential interference with his upcoming duties as president.

Originally scheduled for sentencing on November 26, Trump was convicted in May on 34 felony fraud charges. The Manhattan District Attorney, who led the prosecution, opposes efforts to overturn the conviction but has suggested delaying sentencing until after Trump’s second presidential term.

Justice Juan Merchan, presiding over the case, has paused all proceedings to review legal briefs from both sides. These submissions are due in December, but no new sentencing date has been set.

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With Trump’s inauguration looming on January 20, the court faces increasing pressure to decide whether the conviction will stand or if sentencing will proceed.

Trump’s legal team argues that his conviction undermines the principle of presidential immunity, asserting that legal proceedings during his term would interfere with his ability to govern effectively. Critics, however, have pushed back, asserting that no one, including the president, is above the law.

This legal standoff marks another chapter in the contentious relationship between Trump and the judiciary, as the nation watches closely to see how the case unfolds in the lead-up to his second inauguration.

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ICC Issues Arrest Warrants for Netanyahu, Gallant, and Hamas Commander Over War Crimes

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ICC Issues Arrest Warrants for Netanyahu, Gallant, and Hamas Commander Over War Crimes

The International Criminal Court (ICC) has issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu, former Defense Minister Yoav Gallant, and Hamas military commander Mohammed Deif, accusing them of war crimes and crimes against humanity.

The ICC’s pre-trial chamber stated that there are “reasonable grounds” to believe all three men bear responsibility for atrocities committed during the conflict between Israel and Hamas. These include allegations of murder, persecution, torture, and the use of starvation as a weapon of war.

For Netanyahu and Gallant, the charges stem from Israel’s military response to Hamas’s deadly October 7, 2023, attack, which left 1,200 Israelis dead and 251 abducted to Gaza. Gaza’s Hamas-led health ministry reports over 44,000 deaths during Israel’s subsequent military campaign.

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The ICC accuses Deif, Hamas’s military leader, of orchestrating crimes such as murder, extermination, rape, and hostage-taking during the initial attack. Despite Israel’s claim that Deif was killed in an airstrike in July, the ICC included him in the warrants.

Reactions

  • Israel dismissed the ICC’s decision as “antisemitic” and reaffirmed its stance that the court lacks jurisdiction over the matter, as Israel is not a signatory to the ICC.
  • Hamas hailed the warrants for Israeli leaders as a “historic precedent,” while rejecting the charges against its own commander.
  • United States condemned the ICC’s actions, while European Union foreign policy chief Josep Borrell called for respecting and implementing the court’s decisions.

The warrants raise questions about enforcement, as neither Israel nor Hamas recognize the ICC, and compliance depends on the court’s 124 member states. The development marks a pivotal moment in international law’s attempt to address the human toll of the ongoing Israel-Hamas conflict.

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