The Federal Government has unveiled plans to deploy seven million smart meters across the country under the Presidential Metering Initiative (PMI) as part of measures to eliminate the controversial estimated billing system and curb revenue losses in the power sector.
The Special Adviser to President Bola Tinubu on Energy, Mrs Olu Verheijen, made this disclosure in Abuja during an interview with the News Agency of Nigeria (NAN) to mark the second anniversary of the Tinubu-led administration.
According to Verheijen, the rollout of the smart meters is a critical component of the administration’s broader efforts to improve efficiency and transparency in the nation’s electricity value chain, particularly in the gas-to-power segment.
“There are several interventions underway to enhance the commercial viability of the gas-to-power value chain,” she said, adding that the government is formulating policies and frameworks that would transition Nigeria’s electricity market to a cost-reflective system.
She said, “We are developing policies and frameworks to transition to a system that allows us to charge the true cost of delivering electricity, and more importantly, to drive efficiencies in determining that cost.”
She further explained that the initiative is targeted at drastically reducing collection losses associated with unmetered electricity customers and ending the estimated billing regime that has drawn criticism from Nigerians.
On the issue of debts owed to electricity generation companies (Gencos) and gas suppliers, Verheijen noted that the government was committed to settling the longstanding liabilities, which had accumulated due to underfunded subsidies and the poor revenue performance of Distribution Companies (Discos).
“We plan to clear the legacy debt with a combination of cash and promissory notes to ensure that generation companies and gas suppliers are paid,” she said.
Verheijen added that the meter rollout would improve revenue assurance by ensuring that most electricity consumers connected to the national grid are accurately billed.
“With this, we can end estimated billing and reduce collection losses so that customers who receive electricity are paying customers,” she noted.
She stressed that in exchange for the resolution of the debt overhang, all stakeholders across the power value chain would be expected to commit to improved performance and additional capital investment aimed at expanding access to electricity.
Verheijen also underscored the Federal Government’s resolve to strengthen governance in the power distribution segment, noting that the Discos are the “cash engine” of the electricity value chain.
“Through existing regulatory frameworks, the government will ensure that Discos have the financial and technical capacity to deliver more reliable power to Nigerian homes and businesses,” she concluded.
The initiative is seen as a major step towards reforming Nigeria’s struggling power sector and enhancing investor confidence.
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