11 March, 2013

PRESIDENCY OKAYS NEW PRE-PAID METER SCHEME


THE Presidential Action Committee on Power (PACP), chaired by President Goodluck Jonathan, has endorsed an alternative funding mechanism for pre-paid meters in the country and has directed the Nigerian Electricity Regulatory Commission (NERC) to commence immediate implementation.
The recomposed PACP, which was established in June 2010, provides leadership and guidance for the rapid development of Nigeria’s power sector and determines the general policy direction and strategic focus of reforms in the sector.
The new policy, known as Credit Advance Payment for Meter Installation (CAPMI), is expected to immediately facilitate the deployment of meters to electricity consumers and check ‘crazy bills’ following the failure of the ‘free meters’ scheme announced in June last year by the NERC.

NERC had in June 2012 announced that customers were no longer required to pay for electricity meters because the new tariff, at the time, had incorporated the cost of the meter in the fixed charge component of the bill.
NERC said, however, in Abuja Sunday that CAPMI, which was approved by the PACP at the weekend, was designed as an alternative for customers who are willing to advance money to their distribution companies for speedy installation of pre-payment meters.
The Commission said: “This scheme is optional and will not be imposed on customers. Only those who are willing to advance money for meters may partake in the scheme. The distribution companies are to implement this scheme until the core investors take over, expectedly by the third quarter of 2013.”
There is, however, confusion over the fate of consumers who are unable to advance money to procure meters, as the Commission has been consistently silent on this. There were also no words yet on how much consumers would be required to ‘advance’ for the meters, and how much fixed charge holiday they would enjoy and for how long.
Assistant General Manager (Media) at NERC, Maryam Yaya Abubakar, said the approval followed a presentation made by the Chairman of the Commission, Dr. Sam Amadi, to a meeting of the PACP.
Abubakar said: “The PACP has agreed with the recommendations made by NERC, and has asked for the immediate implementation of this scheme known as ‘Credit Advance Payment for Meter Installation (CAPMI).
“One of the top priorities of the Commission is ensuring that the huge number of unmetered customers is reduced as rapidly as possible, and within the shortest possible time. By doing so, the menace of ‘crazy billing’ and other commercial losses will be greatly curtailed.”
Abubakar admitted that the June 2012 proclamation did not work out as expected nine months after the announcement while an unacceptable number of Nigerians still remain without meters.
Source: Guardian

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