NERC Orders DisCos to Reimburse MAP Customers

  • The order is for DisCos to reimburse customers who have paid to acquire meters under the meter assets provider (MAP) framework.
  • The cost of a prepaid meter paid by a customer under MAP shall be amortised over 120 equal instalments and reimbursed through energy credits.

The Nigerian Electricity Regulatory Commission (NERC) has ordered electricity distribution companies (DisCos) to reimburse customers who have paid to acquire meters under the meter assets provider (MAP) framework.

The commission gave the order in a document dated March 20, 2023, and seen by TheCable. According to the document, the order, which took effect on April 1, 2023, provided guidelines for the disbursement. NERC said the 2021 MAP and national mass metering regulations provide for reimbursing the cost of meters procured by customers under the MAP framework.

The document read in part, “Section 8 (f) of the Regulations provides that distribution licensees are obligated to reimburse customers who pay for meters under the MAP framework through equal instalments of energy credits, at the time of vending, with the cost of the meter amortised over a maximum period of 36 months.

“Section 24 (1) (b) of the regulations provides that where a customer elects to make upfront payments for meters under these regulations, the cost of the meter shall be refunded through energy credits by the distribution licensee. The commission shall approve the reimbursement schedule regarding an evaluation of the financial standing of the distribution licensee. This provision also applies to upfront payments made by customers upon commencement of the MAP framework in 2018.”

The commission said it evaluated the financial standing of the DisCos, which led to a review of the 36-month reimbursement period in place. NERC said the order also mandates that all meters installed under the MAP framework should be included in the regulatory asset base (RAB) of the DisCos by the commission at the next major or extraordinary tariff review.

According to the commission, the cost of a prepaid meter paid by a customer under MAP shall be amortised over 120 equal instalments and reimbursed through energy credits computed based on the prevailing tariff at the time of vending.

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