TechPression

Tag: NERC

  • Nigeria grants a warrant to MTN and others to generate electricity

    Nigeria grants a warrant to MTN and others to generate electricity

    MTN Communications Nigeria Limited, Golden Penny Power Limited, Havenhill Synergy, and other parties have received permits for mini-grid electricity generation from the Nigerian Electricity Regulatory Commission (NERC).

    According to the NERC, three new trade licenses and nine new off-grid generation licenses, totalling 109.69 megawatts, were issued in the first quarter of 2024.

    According to a commission report, Golden Penny Power Limited was granted permission to construct six off-grid gas plants in Lagos, Oyo, Ogun and Cross River. There is a 100MW overall capacity.

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    Additionally, MTN was permitted to construct four 15.94MW captive power plants spread around Lagos State.

    In addition to MTN, the following companies were allowed to produce captive power: Armilo Plastics Limited, West African Ceramics Limited, African Steel Mills Nigeria Limited, SweetCo Foods Limited, and Royal Engineered Stones Limited.

    Businesses that pursue this goal are granted permits for the ownership and upkeep of power plants intended for internal use only—that is, not for selling to a third party. In 2024/Q1, the commission awarded nine permits for generating captive electricity, totalling 52.57MW nameplate capacity.

    According to information obtained by our correspondent, Daybreak Power Solutions, TIS Renewable Energy Limited, Auro Nigeria Private Limited, Watts Exchange Limited, Centum Dopemu Energy Services Ltd, and DMD Electric Limited Lagos State are among the other licensed mini-grid firms.

    Granted licenses by the amended Nigeria’s constitution

    According to Section 165(1)(m) of the Electricity Act 2023, the commission can grant renewable energy companies licenses for mini-grid concessions to serve a particular geographic area exclusively. These concessions indicate that aggregate electricity will be generated and distributed from a site, and the companies must serve customers who request service.

    Accordingly, the commission stated that it has continued promoting the creation and application of renewable energy by providing licenses and registration certificates to construct mini-grids.

    A mini-grid developer is granted permission to build, run, maintain, and sometimes own mini-grids with a generation capacity of up to 1MW and a distribution capacity exceeding 100 kW.

    The commission revealed that it grants registration certificates to a mini-grid provider for one or more systems with distribution capacities less than 100kW.

    “The commission issued three mini-grid permits and two registration certificates in 2024/Q1 following the satisfactory evaluation of mini-grid applications,” the NERC said.

    Approval of Meter Service Providers

    NERC reported that it had approved six Meter Service Providers during the review period, comprising two manufacturers and four installers of meters.

    A Meter Service Provider is an organisation recognised by the commission as a producer, distributor, vendor, or installer of electric energy meters and/or metering systems.

    An organisation that receives a commission permit to offer metering services is known as a Meter Asset Provider. This organisation may handle meter finance, procurement, supply, installation, maintenance, and replacement.

    The installers Genobet Limited, Mojec Meter Asset Management, Epagad International Services Limited, Abdulrahman Ahmadu Zubairu, Smart Meters Company Limited, and Crestflow Energy Limited are among the certified meter service providers.

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    Orders issued by the Nigeria Electricity regulator

    The commission added that in 2024/Q1, it published 36 new Orders in addition to one rule. NERC/2023/023—NERC/2023/033—Multi-Year Tariff Order 2024 for the Distribution Companies; NERC/2023/034—MYTO 2024 for the Transmission Company of Nigeria Plc; and NERC–R–001–2024—Eligible Customer Regulations, 2024 are among them.

    Other orders include NERC/2023/035, which concerns the Transmission Company of Nigeria’s performance improvement plan; NERC/2024/001, which concerns regulatory intervention in Kaduna Electricity Distribution Plc; NERC/2024/004–014, which concerns DisCos’ noncompliance with capping estimated bills for January–September 2023; and NERC/2024/016–036. Throughout the quarter, the commission gave licensees 36 orders.

  • NERC mandates prepaid meter upgrades: what you need to know

    NERC mandates prepaid meter upgrades: what you need to know

    In a significant development aimed at enhancing the efficiency and security of Nigeria’s electricity distribution system, the Nigerian Electricity Regulatory Commission (NERC) has issued a directive requiring prepaid meter users to undergo a mandatory upgrade before November 2024. 

    This directive, which has garnered both interest and concerns among the public, is part of NERC’s efforts to align with global trends in prepaid meter technology.

    NERC’s decision to push for meter upgrades is grounded in the evolving landscape of prepaid meter technology. The regulatory agency has highlighted the importance of aligning with the Standard Transfer Specification (STS) standard, which will undergo a significant transformation known as “Roll Over” by November 2024. To adapt to this change, all meters need to be upgraded to meet specific standards. The essence of this upgrade is to ensure the smooth operation of prepaid meters in the future.

    As part of the upgrade process, meters will require the implementation of Token Identifier (TID) rollover. To facilitate this, Utility Companies will provide consumers with Key Change Tokens (KCT). When consumers input these tokens into their meters, it will reset the TID stack memory to 0 and change the meter key. This mechanism is essential to prevent token replay and ensure the security and integrity of prepaid meter transactions.

    Read also: NERC makes 40% increase in prices of prepaid electricity meters

    How to Perform the Meter Upgrade

    The process of upgrading prepaid meters is relatively straightforward. Consumers will receive two complimentary Key Change Tokens (KCT) from their respective electricity distribution companies (DisCos). These tokens will be distributed in a manner similar to electricity token purchases. To initiate the upgrade, consumers need to input these tokens into their meters, following the same procedure they use for entering electricity tokens. Once the meter accepts the token, an automatic upgrade will be triggered.

    An important assurance provided by the Nigerian Electricity Management Services Agency (NEMSA) is that the units in your meter will remain untouched during the upgrade process. This means that whatever unit balance you have in your meter before the upgrade remains intact afterwards. There will be no acceleration of the meter’s usual operational pace.

    A One-Time Process

    NERC has clarified that the meter upgrade is a one-time process. Customers should not expect to undergo a similar procedure in the near future. This ensures that the upgrade is a convenient and hassle-free experience for prepaid meter users.

    NERC has also emphasized that the meter upgrade is entirely free of charge. Consumers are encouraged to reach out to their respective electricity distribution companies (DisCos) for more information and guidance on the upgrading process.

    Deadline for Meter Upgrading

    The deadline for completing the meter upgrade is set for November 2024. It is crucial for all prepaid meter users to ensure their meters undergo this process before the deadline. Failure to do so may render the meter inoperable, preventing users from recharging and resulting in a loss of access to electricity services.

    In related news, NERC has also directed electricity distribution companies (Discos) to establish customer engagement platforms, further enhancing the consumer experience in the sector. This directive underscores NERC’s commitment to improving the quality and reliability of electricity services in Nigeria.

  • NERC makes 40% increase in prices of prepaid electricity meters

    NERC makes 40% increase in prices of prepaid electricity meters

    The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC) announced that they will be raising the prices of prepaid power meters. This modification has already begun, as it went into effect on the 6th of September, 2023 (a Wednesday).

    They made this declaration in a document that was issued officially by the NERC, and it was given the reference number NERC/2023/020. Sanusi Garba, the Chairman of the Commission, and Dafe Akpeneye, the Commissioner Responsible for Legal, Licencing, and Compliance, both put their names on the document.

    According to the announcement made by the government, the price of a single-phase metre, which is used to measure the amount of energy used in residences with fewer rooms, has increased to N81,975.16k. When compared to the previous price of N58,661.69k, this one is significantly higher. The cost of a three-phase metre, which is typically seen in larger establishments, is also increasing up. The new price, which is an increase from the previous one of N109,684.36k, is N143,836.10k.

    This price hike left a lot of people who use electricity feeling unhappy and frustrated. They demanded an explanation as to why the Nigerian government maintains its policy of raising prices across the board in the energy industry.

    Read also: eFactory simplifies electricity payments in Nigeria

    Why NERC implemented the increase

    On the other hand, the Nigerian Electricity Regulatory Commission provided an explanation for the cause for the price increase of the metres.

    They stated that it is for the purpose of ensuring that the prices of metres are fair for both the businesses who provide them and the customers who utilise them. The rise in price will allow these metre companies to generate a decent profit while also covering the costs of acquiring and maintaining metres. This will help these companies meet their expenses.

    “Evaluate the affordability of meter services for consumers, aiming to prevent excessive pricing that could burden end-users. Ensure that MAPs are able to provide meters to end-user customers in the prevailing economic realities,” the commission stated.

    According to the government, it is of utmost significance to ensure that all households are equipped with electricity metres. This is due to the fact that it assists the nation’s electrical industry in making enough money to continue operating effectively.

    Because of these metres, the electric company and the customers who consume power will each receive the necessary amount of money for their services.

    “The Meter Asset Provider Scheme is one of the four frameworks in the regulations for the provision of meters to end-use customers in NESI. Section 8(1)(c) of the regulations provides that the costs of single-phase and three-phase meters issued by MAPs, inclusive of all other associated costs of installation and warranties, shall be at the regulated rates approved by the commission.”

    “The commission notes that significant changes in macroeconomic indicators, such as inflation and changes in foreign exchange rates, have necessitated a review of the regulated rates for MAP meters,” the NERC stated.

    In order to arrive at its decision on the new rates for metres, the government claimed that it had taken into consideration significant data provided by the National Bureau of Statistics and the Central Bank of Nigeria.

    They also stated that the cost for the metres that are utilised by the businesses who supply them will remain unchanged. These rates incorporate all of the expenses associated with installing the metres and providing warranties that they will function properly.

    The prices that they approved do not include a tax known as the value-added tax; however, they do include the expense of obtaining a specific seal from the Nigerian Electricity Management Services Agency. A single-phase metre will set you back N842.80 for this seal, while a three-phase metre will set you back N1,100.80.

    “All MAPs shall adjust their prices to reflect the approved rates. All MAPs shall supply meters previously paid for by end-use customers prior to the commencement of this order at the prevailing rate when payment was made by the customers without additional increase in cost.”

    “All Discos and MAPs are to develop and implement customer enlightenment campaigns on the price review, along with a schedule for the implementation of their meter rollout plans. All MAPs shall continue to file monthly sales and meter installation returns with the commission,” NERC said.

    How to update prepaid meters to avoid downtime

    Impact on consumers

    The price hike for electricity metres was not well received by customers of the utility. They pleaded with the government to reconsider how this will impact the people of Nigeria and make the necessary adjustments.

    Uket Obonga, the National Secretary of the Nigeria Electricity Consumer Advocacy Network, remarked: “The government has been talking about this since they changed the foreign exchange rates, but we told them it’s not a good idea because Nigerians are already struggling.”

    He added that the rise had placed as a result of pressure that was put on the government by the Metre Asset Providers. Some of these service providers have even stated that they will discontinue providing metres if the cost of the equipment does not decrease.

  • How to update prepaid meters to avoid downtime

    How to update prepaid meters to avoid downtime

    The Nigerian Electricity Regulatory Commission (NERC) has ordered all people who use prepaid meters to do a required update by November 24, 2024, so their meters continue to work.

    The news was made public on Twitter by NERC on August 22. It said that if people didn’t follow the rules, their prepaid metres might not be able to be refilled after the deadline. The commission says that users should get in touch with their DisCo to find out more about the update.

    The statement says, “Prepaid meters may need updating. From November 2024 on, meter recharges may be unavailable. Updates are simple and free. Two free key change tokens (KCTs) will update your meter from DisCos. The update won’t change your meter’s units or speed it up. For details, contact your distro.”

    Read also: BLUETTI offers solution for free and sufficient electricity

    Why do you have to keep your prepaid meter up-to-date?

    One of the main reasons for the update is that the prepaid units have changed. Conlog, one of the licensed meter asset providers, says that each credit token, an essential tool for recharging prepaid meters, has a unique token identifier (TID) coded into its 20 numbers. This TID is based on a starting date of 1993 and will end in November 2024.

    So, if you don’t change the meter’s base date correctly, the meter will become useless.

    The simple answer to this problem is to reset each meter to point to a new base date. To do this, you must enter two special codes before November 24, 2024. The NERC says that this change will not affect the current units within the meter or change how fast they work. They said that the only reason for this update is to make sure that prepaid meters continue to work.

    How to change the prepaid meter

    The update process is hassle-free. Since the update is free, NERC promises a smooth transition to the new system. Each user will receive two free Key Change Tokens (KCTs) from distribution companies (DisCos) to facilitate the update.

    Energy token buyers receive an essential change token with their standard tokens. Once their DisCos or agents provide this essential change token to start the update, the following energy purchase will be regular.

    BuyPower suggests these simple prepaid meter updating methods.

    Key change tokens are available at DisCo offices.

    Electricity/energy token purchase: This gives you 3 tokens. The critical change tokens are the first two, and your purchased electricity token is the third.

    Enter key-change tokens: Enter KCT1 and KCT2 on your meter, then your electricity token.

    Your meter upgrade is complete.

    This 20-digit numerical code works like an electrical recharge token but has a distinct purpose. The recharge token credits your metre, while the critical change token adjusts it to match tariff plans, key revision numbers, or supply groups. After applying the essential change token, the meter will accept electricity recharge tokens again.

    NEMSA warns customers against accepting electricity metres without seals, labelling

    User convenience in Ikeja and Kano Disco

    Kano Disco and Ikeja Electric, prepaid meter consumers, can quickly get their key change tokens online. Simple and accessible, the process has been simplified. NERC-compliant meters can be maintained by following a few simple steps.

    For Kano DisCo users:

    • Enter https://www.kedco.ng/contact.htmto access KEDCO’s customer service portal.
    • Choose ‘key change token’ as your concern.
    • Enter your name, meter number, email, phone, and service address.
    • Send your request by clicking ‘Send Issue’.
    • Check your email for the two 20-digit key change tokens later.
    • Send it as ‘Key Change 1’ and ‘Key Change 2’.
    • Put key change tokens in order. First, set the input key to 1, then press enter. Change the key to 2 and press ‘enter’ after ‘Success’.

    For Ikeja DisCo users:

    • Tariff migration token: https://ie-payments.com/apps/
    • Include your meter number in the request.
    • Click ‘Submit’
    • Two 20-digit key change tokens will be generated for your metre.
    • Enter the critical change tokens on your meter, and you’re done.