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Towards Efficient Metering Of Customers’ Houses

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The recent directive by the Nigeria Electricity Regulatory Commission (NERC) that distribution companies (DISCOs), under the Power Holding Company of Nigeria (PHCN) should ensure the metering of all customers’ houses across the country within 18 months could simply be seen as a blue-Peter or blanket-bath for the unbundled power company.

It has since been noticed by Nigerians that even when houses are metered, NEPA/PHCN staff do not read meters before billing, rather they deliberately estimate and issue ‘crazy bills’ and charging consumers for power they did not consume. Even the distribution companies claim that average consumption of those who were adequately metered was applied to a cluster of residence to arrive at estimated consumption and customers believe that the DISCOs calculations for estimated billing were not based on established scientific or reliable parameters.

Eyo Ekpo, the Commissioner for Marketing, Competition and Rates of the NERC had ordered all the DISCOs to submit their metering plans for an effective billing system, adding that the distribution companies were expected to complete the metering process between 12 and 18 months.

“We have told them that between 12 and 18 months, they should be able to meter all houses of their customers” , Ekpo said.

According to him, NERC is determined to ensure greater number of meter distribution to customers.

The main issue bothering customers and Nigerians as a whole is not the metering of their houses but the question is, are PHCN staff prepared to read the meters and give consumers accurate bills?

Metering of electricity in Nigeria, according to a report submitted by the Metering Inquiry Committee, began with the production and consumption of electricity around 1895. The system and process are, however, bedeviled by inefficiencies and corrupt practices.

Historically, electricity metering was centrally coordinated with the various units of NEPA/PHCN at the distribution end relying on the procurement apparatus at the headquarters to procure and distribute meters to customers through three central stores. This inefficient system led to a backlog of meter requests by customers who pay for such services without the meters being installed.

The resultant effect has been the institutionalization of the unwholesome practice of estimated billing and the attendant customer dissatisfaction and disappointment, which partly accounts for consumers’ refusal to register for meters.

It is against this backdrop that the Metering Inquiry Committee was set up to garner data and information on the root cause of the endemic metering crisis in the country which impacts the electricity sector negatively. During its assignment a few weeks ago, the committee discovered that less than 50 per cent of the registered customers in the Nigerian Electricity sector are metered.

This has led to the prevalent practice of arbitrary charges based on unscientific estimation of electricity consumed by customers by the DISCOs in order to meet up with their overhead costs in an environment of inefficiency and dwindling supply of electricity.

According to the committee’s report, the total number of customers captured in the records of operators of the Nigerian Electricity Supply Industry is 5,172,979, which represents 18.65 per cent of Nigeria’s total households put at 28,900,492 as provided by records from the National Bureau of Statistics in 2006. This record, however, does not include those enjoying electricity illegally who are not registered by the DISCOs, known as illegal consumers’.

Out of the number of customers registered, 2,893,701 or 55.94 per cent were metered, while 2,355,045 or 45.53 per cent were unmetered. The Committee, however, discovered that out of the total number of customers metered, about 701,385 or 22 per cent of the meters were faulty. At present, a total of 2,956,069 or 54.83 per cent of all the customers registered are not metered at all or have no functional meters. On the average, therefore, only about 2,434,541 or a minute 8.42 per cent of the total households in Nigeria are currently being billed correctly by all DISCOs if a household is used as our metering index.

The remaining registered customers are, therefore, at the mercy of estimated billing. This development has created a wide gap in effective billing which calls for emergency response.

In Port Harcourt, the Rivers State capital, the Business Manager, Diobu Business Unit of the PHCN, Festus Mmegbu disclosed that as at march this year, 85 per cent of the 36,000 customers using electricity in the area do not have meters. He said there was massive deployment and installation of meters going on and called on customers to register and pay for meters.

He regretted that failure by customers to install meters at their premises was causing under-estimation.

Most customers are clamouring for pre-paid meters as a more efficient metering system that can guarantee accurate billing. This is why the Chief Executive of Ikeja Electricity Distribution Company Plc expressed concern over agitations of customers for prepaid meters which are being used in the area currently.

There is need to develop and adopt a metering system aimed at making smooth and effective our electricity operations. To ensure customer satisfaction, special units should be established by the distribution companies such as tracking/management of customer account records and debts to ensure that no unwarranted debts or excessive estimations are made and also ensure that where frivolous estimates were made in the past, they will be expunged to give credibility to the bills and billing operations.

Electricity distribution companies should ensure fairness in dealing with their customers to maintain the trust and confidence reposed in them. There should be an elaborate customer reclassification exercise aimed at ensuring that no customer is placed on the wrong tariff class. To enjoy the cooperation of customers, distribution companies must make sure that their Chief Executive Officers (CEOs) are responsible, efficient and accountable.

They should avoid the situation where monies for meters are paid through draft by customers to the CEOs and there is no feedback as to whether they get the meter or not, and how long the customer stays before getting meter. It is discovered that in most of distribution companies, customers paid for meters for years and yet were not supplied any. In most cases, meters are not scarce but the company staff demand for kick-back before releasing the meter.

There are also evidences of some DISCOs refusing customers’ payments for meters, especially pre-payment meters. Indeed, sharp practices and inefficiencies are the hallmarks of the metering system in Nigeria, from ageing power plants and terrible transmission lines to more importantly, rampant corruption and poor collection rates.

In all the six geo-political zones visited by the Metering Inquiry Committee, complaints ranging from refusal to meter customers, estimated billing following refusal to read installed Non-PPM meters, culture of impunity of PHCN staff, connivance of some unscrupulous PHCN staff with private individuals to defraud the public were received.

Other irregularities discovered were demand for money for preferential treatment in various forms such as hot lines, tamper code, PR (unreceipted additional payment for supply of meters. Estimated billing was the norm in all the DISCOs visited by the committee. For instance, customers in Lagos, Enugu, Yola, Kaduna, Makurdi and Abuja distribution companies alleged that delay in the supply of meters to customers and blantant refusal to obtain correct meter readings which resulted in estimated billing were deliberate. They were of the view that with the poor supply of electricity in the country and gross inefficiency on the part of distribution companies to curtail operational losses (human and technical) estimate billing remains the only option for the DISCOs.

For Nigeria to get it right in the metering policy, the Federal Government through the Nigerian Electricity Regulatory Commission (NERC) should review the operations of the distribution companies, especially now that the power sector reform is on the front burner of the present administration coupled with the privatization process of the Power Holding Company of Nigeria (PHCN).

NERC should adopt a regulatory system that would make it obligatory for DISCOs to meter their distribution transformers for adequate energy accounting and equity as well as intensify its monitoring and enforcement machinery to ensure proper implementation of existing regulations on metering, billing and cash collection. There shall be overall improvement in customer service and operations to eliminate the culture of impunity prevailing in the electricity sector.

 

Shedie Okpara

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Renewable Energy Investment Forum Begins Nov. 25

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Nigeria’s growing solar market will take centre stage as the Renewable Energy Forum Africa (REFA) 2026 holds in Lagos on November 25-26 with the backing of the Rural Electrification Agency (REA).

Organised by the Africa Solar Industry Association (AFSIA) and supported by SolarPower Europe, the forum would bring together investors, developers, regulators, utilities and policymakers at the Radisson Blu Anchorage Hotel, Victoria Island.

The agency said the forum would strengthen partnerships, attract investment and support Nigeria’s clean energy and local manufacturing ambitions.

REA Managing Director, Abba Abubakar Aliyu, is billed to deliver the keynote address at the opening plenary.

The forum would also examine local manufacturing following the launch of Nigeria’s first privately owned 100MW solar module assembly plant in Ibeju-Lekki, Lagos.
The event would also feature B2B meetings, an exhibition and the AFSIA Awards on November 25.
It would be noted that Nigeria is West Africa’s leading solar market, with about 618MWp operational capacity, ranking first in the region and eighth in Africa, according to AFSIA.

The country also leads the continent in mini-grid capacity with 132MWp, while its commercial and industrial (C&I) solar capacity stands at 385MWp.

The market is receiving fresh support through the $750m World Bank-backed Distributed Access through Renewable Energy Scale-up (DARES) programme, targeting 1,350 mini-grids and electricity access for 17.5 million Nigerians.

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CBN Appoints Eight New Pre-shipment Agents For Crude Oil And Gas Exports

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The Central Bank of Nigeria (CBN) has appointed eight pre-shipment inspection agents to monitor crude oil and gas exports, alongside two monitoring and evaluation agents to oversee their activities.
The appointments, announced in a notice signed by Aderinola Shonekan, Director of the CBN’s Trade and Exchange Department, took effect on October 2, 2026, under the Nigerian Export Supervision Scheme.
The notice directs authorised dealer banks, the Nigeria Customs Service, petroleum regulators, terminal operators and oil and gas companies to comply with the revised arrangements.
The CBN assigned the eight inspection agents to specific crude oil and gas export terminals as part of the revised framework.
The allocations are as follows:
Dakee Engineering and Construction Ltd.: LNG, Escravos (Gas), Bonny River Terminal (BRT) and EGTL.
Trexem Energy Services Limited: Egina, Qua-Iboe and Tulja. Geoscape Limited: Escravos, ERHA, Odudu and FSO Cawthorne.
617 Limited: Bonga, Brass, Usan and Eagle.Robinson International Energy Ltd.: Ugo-Cha, Penington, Aje, Ima, Oyo and Nembe. Trobell International Nigeria Limited: Forcados, Bonny and Okwori.
Integrated Shipping Services Nigeria Ltd.: Akpo, Antan, Okoro, Anyala-Madu and Ebok.
Kephren Business Ltd.: Ukpokiti, Utapate, Yoho, Abo, Agbami, Ajapa, Okono, Okwok and additional marginal streams designated by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The CBN also appointed two monitoring and evaluation agents, the Q&Q Control Services Limited and the Arlington Securitas Nigeria Limited to oversee the inspection companies.
The Q&Q Control Services Ltd. would monitor 617 Limited, Trexem Energy Services Limited, Geoscape Limited and Kephren Business Ltd while the Arlington Securitas Nigeria Limited would monitor Dakee Engineering and Construction Ltd., Trobell International Nigeria Limited, Robinson International Energy Ltd. and Integrated Shipping Services Nigeria Ltd.
The latest appointments follow previous changes to the CBN’s monitoring arrangements for crude oil and gas exports.
The latest changes update the companies responsible for inspecting export cargoes and the terminals assigned to them. The notice requires the relevant institutions and operators to comply with the new allocations from October 2, 2026.
The appointments also come amid growth in Nigeria’s gas export earnings.
According to the CBN, Nigeria’s gas export earnings rose to $2.53 billion in the first quarter of 2026, reflecting stronger earnings from the country’s natural gas sector and contributing to its external trade position.
The revised inspection arrangements place designated agents in charge of specified export terminals, while the monitoring and evaluation companies oversee the inspection agents’ activities under the scheme.
Recall that in May 2024, the apex bank appointed 11 pre-shipment inspection and monitoring agents under the export supervision scheme.
The government subsequently reviewed the allocation of oil export terminals in March 2025, assigning additional terminals to nine inspection agents appointed under the scheme.
In July 2026, the CBN also appointed Candid Oil Services Limited as the pre-shipment inspection agent for the Taurus Oil and Gas Depot.
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What’s Next for Global Natural Gas Demand?

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The Iran war and the lack of LNG supply from the Middle East have upended forecasts of near-term natural gas demand and import costs.
So far this year, economies in Europe and Asia have relied more on renewables and coal for power generation to offset reduced gas supplies procured at very high prices.
This year’s crisis has prompted governments to rethink energy policies with energy security the top priority, again, after the 2022-2023 energy crisis.
After the decline in global gas demand this year, due to prices at four-year highs, the obvious question for gas market participants is where demand is going after the current crisis ends. Has the second gas crisis in four years permanently undermined expectations of long-term gas demand growth?
Gas cannot be replaced in many industrial processes, yet. Electricity-generating systems in major economies that have relied on gas for power cannot have a reliable electricity supply without gas.
Still, this year and over the past four years, key gas markets in Europe and Asia have seen the share of gas in their electricity mix decline.
The UK, the Netherlands, and Turkey, and major Asian economies China, Japan, and South Korea, have all seen the share of gas-fired electricity drop, according to data from think tank Ember cited by Reuters columnist Gavin Maguire.
The spike in natural gas prices has accelerated Europe’s renewables rollout, which took off in earnest earlier this decade when Russia invaded Ukraine in 2022 and cut off pipeline gas supply to most of Europe. The share of renewables has surged in the EU and the UK in recent years, gradually sidelining gas as the reliable backup fuel rather than the one meeting growing electricity demand.
Globally, “Gas is losing its share in the global power mix as renewables increasingly meet rising electricity demand,” Ember said in a report earlier this year. The analysis found that the share of gas in the global power mix declined for the fifth consecutive year in 2025, despite a small rise in absolute gas generation. Strong growth in clean power, led by solar and wind, met around 68% of global electricity demand growth over the five years to 2025, reducing the need for a significant rise in gas power generation
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According to Ember, 61 out of 124 economies generating electricity from gas had passed their gas generation peak.
However, these countries accounted for around one-fifth of global gas-fired electricity generation in 2025. So the large gas-generating economies, albeit a smaller group, haven’t seen their peak in gas power generation.
The biggest emerging economies, China, India, and Brazil, have actually met their surging electricity demand without turning to gas, Ember noted.
China’s gas share remained close to 3% of the electricity mix in 2025 despite rapid demand growth, while gas power generation in India and Brazil plays a more limited balancing role, the think tank said.
“The economics and energy security case for electricity are increasingly moving in the same direction,” said Malgorzata Wiatros-Motyka, ?Senior Electricity Analyst at Ember.
“As renewables lower costs and reduce exposure to fuel price shocks and geopolitical disruptions, gas is steadily losing the advantages that once made it the default fuel for power system growth.”
The writing may have been on the wall for natural gas producers and exporters if natural gas was only used in power generation.
But natural gas key uses include as feedstock in industrial manufacturing, including cement and steel, as a chemical feedstock for fertilizer, or as the start of the supply chain of manufacturing plastics, paints, synthetic fabrics, and medicine, to name a few.
And then comes the biggest twist in energy and electricity demand forecasts in recent years—the AI boom. Data centers will drive a large part of the rise in global electricity demand, which has returned to growth even in the U.S. and Europe after a decade or so of flatlining. Renewable energy alone will not meet the surge in power demand, and gas will play a key role in America and in most of Asia, where many countries are positioning to become AI and data center hubs.
The biggest LNG producers, exporters, and traders see long-term gas demand growth intact despite this year’s supply shock that is reducing consumption amid spiking prices.
For example, Shell, the world’s biggest LNG trader, said in its annual LNG Outlook 2026 this summer that surging gas demand in South and Southeast Asia would push global LNG demand up by 65% by 2050 from 2025 levels, although growth this year has been stalled by the Strait of Hormuz crisis.
Shell sees global LNG demand increasing to nearly 700 million tons annually by 2050, up by around 65% from the 2025 levels of 422 million tons.
“The conflict created a system-wide shock with disruption cascading across all segments of the economy, but the LNG industry has proved resilient and able to adapt to changing market conditions,” Cederic Cremers, President of Integrated Gas at Shell, commented in the outlook.
“While more investment in both supply and demand infrastructure is needed, the long-term outlook remains strong and LNG will continue to be a stabilising force in the global energy system.”
The International Gas Union (IGU) said in its 2026 World LNG Report in July that “while LNG industry is not immune from the challenges of operating in an era of heightened geopolitical uncertainty, its unique ability to re-distribute large quantities of clean-burning energy from a broadening supply base only enhance LNG’s role as a ‘shock absorber’ to the global economy.”
By; Tsvetana Paraskova
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