NERC: Order NERC/2026/121 Operationalisation for Metering Tranche C

• NERC has issued Order NERC/2026/121, effective November 2, 2026, to operationalize Tranche C of the Meter Acquisition Fund.
• The N30 billion fund, part of the Presidential Metering Initiative, aims to meter unmetered Band A and accelerate Band B customers.
• Distribution Companies must conduct transparent procurement from eligible local manufacturers and asset providers, adhering to NERC's prescribed maximum prices.
• All meters supplied and installed under this program are to be provided free of charge to customers and must be clearly labeled "NOT FOR SALE."
• All meter installations for Tranche C must be completed by May 31, 2027, with sanctions in place for non-compliant DisCos.

All meters supplied and installed under this program are to be provided free of charge to customers, a crucial detail for consumer protection and compliance.

The Nigerian Electricity Regulatory Commission (NERC) has officially released Order No. NERC/2026/121, which outlines the comprehensive framework for the operationalisation of Tranche C of the Meter Acquisition Fund (MAF). This significant directive became effective on November 2, 2026, and is designed to establish a clear and transparent process for implementing the third phase of the Presidential Metering Initiative, a critical national effort aimed at rapidly closing Nigeria's substantial electricity metering gap.

Under this new NERC electricity metering rules, a substantial sum of ₦30 billion has been approved for Tranche C of the Meter Acquisition Fund Nigeria. This funding will be strategically distributed among the country's eleven Distribution Companies (DisCos), with allocations proportionate to each DisCo's financial contributions to the overall fund. The primary objective of this tranche is to ensure that all remaining unmetered Band A customers receive meters, while also significantly accelerating the metering process for Band B customers.

To ensure fairness and widespread impact, the Order mandates an equitable distribution of these meters across all states within the respective DisCo franchise areas.

The NERC Order NERC/2026/121 operationalisation includes stringent requirements for Nigerian DisCo meter procurement. Distribution Companies are now obligated to conduct transparent procurement processes, ensuring fairness and accountability in the selection of meter providers. These processes must engage eligible Local Meter Manufacturers and Assemblers (LMMAs) as well as Meter Asset Providers (MAPs) who possess verified meter stock, thereby supporting local industry and ensuring quality.

To maintain price consistency and prevent overpricing, the Commission has prescribed maximum procurement prices for meters. These caps are determined based on the median national MAP online bid prices recorded during the September 2026 bid cycle, providing a benchmark for fair market value. This measure aims to optimize the use of the allocated funds and ensure cost-effectiveness in the metering program.

Payment to the selected meter providers will be structured in two distinct stages. An initial payment of 70% of the contract value will be disbursed upon the verified delivery of the meter stock. The remaining 30% will only be released following the confirmation of complete installation of the meters, linking payment directly to successful deployment and functionality.

A cornerstone of this initiative is the unequivocal declaration that all meters supplied and installed under the Meter Acquisition Fund Tranche C Nigeria program shall be provided free of charge to customers. This crucial provision aims to alleviate the financial burden on electricity consumers and accelerate meter adoption. To reinforce this, every installed meter must prominently display the relevant DisCo's name, the specific MAF tranche, and the clear inscription "NOT FOR SALE," ensuring transparency and preventing illicit sales.

Furthermore, the Order addresses scenarios where a DisCo initiates the relocation of an existing customer's connection point for revenue protection purposes. In such instances, the financial responsibility for the relocation costs will be borne entirely by the DisCo, protecting consumers from unforeseen charges. The NERC electricity metering rules also stipulate sanctions for DisCo defaults that impede meter installation, emphasizing the Commission's resolve to ensure timely deployment.

To guarantee accountability and transparency throughout the process, the Order mandates comprehensive monitoring, reporting, and evaluation requirements for the Fund Manager, all participating DisCos, and the meter providers. All supply and installation contracts must be formally filed with the Commission. Crucially, a strict meter installation deadline of May 31, 2027, has been set for all installations under Tranche C, underscoring the urgency of this initiative and the need for prompt execution.

The issuance of Order NERC/2026/121 and the operationalisation of Tranche C of the Presidential Metering Initiative Tranche C underscore NERC's unwavering commitment to several strategic objectives. These include the overarching goal of closing the national electricity metering gap, which is vital for the sector's sustainability. By ensuring accurate billing and consumption data, the initiative aims to significantly improve revenue assurance for DisCos, fostering a healthier financial ecosystem within the power sector.

Beyond financial considerations, the program is designed to enhance service delivery to electricity consumers by providing them with accurate metering and greater control over their consumption. Ultimately, these measures are geared towards protecting electricity consumers from estimated billing and ensuring a more transparent and equitable energy market. The Commission strongly urges all stakeholders to adhere strictly to the provisions of this Order, recognizing its critical role in transforming Nigeria's electricity landscape.

Compliance officers and legal counsel for Nigerian Distribution Companies (DisCos) and eligible Local Meter Manufacturers/Assemblers (LMMAs) or Meter Asset Providers (MAPs) must review Order NERC/2026/121 to ensure strict adherence to the prescribed procurement processes, payment milestones, and reporting requirements for Tranche C of the Meter Acquisition Fund, particularly noting the May 31, 2027 installation deadline and potential sanctions for non-compliance. Lawyers advising consumers should be aware that meters supplied under this program are free of charge.

Source: Original reporting via NERC official announcement