FG moves to bridge metering gap with $155m loan

By Obas Esiedesa & Mariam Eko 

Nigeria’s average daily power generation dropped by 13.84 percent in 2022 to 4,526.83 megawatts compared to 5,254.03MW recorded in 2021, the Nigerian Electricity Regulatory Commission, NERC, has reported.

The decline occurred despite the partial activation of power purchase agreements with all the generation companies in the country on July 1, 2022, which guaranteed payments for power supplied to the national grid. The guarantee included direct payment to oil and gas companies for gas supplied to the power plants.

The partial contract activation target was 5,505MW peak generation and a base load of 4,893MW.

The Commission in its 2022 Annual Reports and Accounts attributed the decline in generation to unavailability of thermal plants due to gas constraints, annual maintenance, and shutdown due to mechanical/technical faults.

NERC stated that Egbin ST Gas, Geregu, Okpai, Delta Gas and Paras had less than 50 percent of their capacities available due to a combination of the aforementioned factors.

It stated that between April and June 2022, the four hydro power plants; Kainji, Jebba, Shiroro and Dadin Kowa also experienced decreases in available capacity due to low water head and water management.

“This was due to seasonal variations occasioned by the commencement of the rainy season in Nigeria”, the commission added.

The report also showed that the average daily energy generated in 2022 declined by 209MWh/h (- 4.98 percent) from 4,197MWh/h in 2021 to 3,988MWh/h.

 “This can be attributed to the reduction in available capacity in 2022 compared to 2021 although it is noteworthy that the scale in reduction of generation was significantly lower than reduction in available generation, caused by increased utilisation of available capacity”.

NERC reported that the total number of registered customers as of December 2022 was 12,152,106 with 5,134,871 (42.25 percent) of them metered – metering rate increased by +5.79pp from 36.46 percent in 2021.

FG moves to bridge metering gap

With about seven million customers still without meters as at December 31, 2022, the Federal Government at the weekend moved to provide additional 1.2 meters through the second phase of the National Mass Metering Programme, NMMP.

According to the government, 47 companies have put in bids to supply the electricity smart meters which would be funded by the World Bank’s $155 million loan.

Speaking at the opening of the bids in Abuja, the Special Adviser to the President on Energy, Olu Veihejen expressed the commitment of the Federal Government to provide meters for all electricity customers in the Nigerian electricity market.

According to her, “The Federal Government of Nigeria is committed to delivering reliable and cleaner electricity to Nigerian people and businesses.