One of the biggest benefits of reforms in the power sector is the gradual phaseout of estimated billing system, with the issuance of meters to consumers.
With rapid acquisition of electricity meters, the claims of over-billing by some consumers has drastically reduced.
To sustain the transformation in the sector, Electricity Distribution Companies (DisCos) deployment of meters have restored hope to the hitherto helpless consumers, who are now paying electricity bills based on their consumption rates.
The Nigerian Electricity Management Service Agency (NEMSA) and Nigerian Electricity Regulatory Commission (NERC) are trying to holistically reform the sector and make it consumer and investor-friendly for the benefits of all stakeholders, particularly the nation’s economic players.
Already, Electricity Distribution Companies (DisCos) with the backing of agencies in the power sector like NEMSA and the NERC flagged off public announcement regarding the issuance of Standard Transfer Specification (STS) prepayment meters upgrading by means of Token Identifier (TID) rollover.
The maiden exercise was as part of their collaborative efforts to improve the revenue efficiency of the sector and create a win-win situation for service providers and consumers.
Operators like the Eko Electricity Distribution Company (EKEDC) mandated its customers to upgrade their Standard Transfer Specification (STS) meters because the tokens for the system would soon be exhausted.
The customers now have less than three weeks to upgrade their STS meters to meet the November 24 deadline set by the company.
With this development, customers who have not yet upgraded from metres to 2 as required, will no longer be able to load units on their meters after the cut-off date.
According to the Acting Chief Executive Officer of EKEDC, Rekhiat Momoh, the previous Standard Transfer Specification (STS) version 1, was created in 1993 and another version was created to improve on the first version in 2014.
“The reason for the migration/rollover/upgrade to 2 is that the tokens in the first system will be exhausted soon and the improved one is almost inexhaustible and the platform is smarter and better. The STS is like what links the point of sale (messaging/communication/tech stuff) to the meter,” she explained.
“That’s like a summary of it. The deadline is November 24, 2024. After that day, customers who don’t migrate will not be able to use vend/recharge,” she added.
Again, with recoding of meters done at no cost to the customers, there is nothing that should stop customers from participating in the exercise.
Analysts said the current steps taken by EKEDC and several of other Discos aligns with Nigerian Electricity Regulatory Commission (NERC) directive that they upgrade customers prepaid meters or be sanctioned.
They insist that seamless completion of the exercise could boost revenue for DisCos and promote efficiency in their operations, while guaranteeing more sustainable power supply.
Already, NERC said it would sanction DisCos that fail to complete migration from essential revision 1 to critical revision 2. The electricity industry regulator said it would sanction DisCos that fail to complete the migration of their customers’ token identifiers of standard transfer specifications (STS) meters from key revision 1 to key revision 2.
Why meter upgrade is essential
The essence of this upgrade is to align users in Nigeria with a global software update that will affect all prepaid meters from November 24, 2024, which will cause meters to stop accepting old tokens unless they are upgraded.
To ensure that prepaid electricity vending systems is more secure as well as Token Identifier (TID) rollover compliant, consumers are advised to upgrade their meters before November 24 deadline to ensure token compatibility and to avoid having any issues with it.
Already, DisCos have in various ways unveiled steps to assist consumers in the execution of the TID rollover key change token exercise.
EKEDC lists TID rollover process
Momoh further explained that the STS upgrade is a simple process that involves inputting two sets of 20-digit tokens into the meter through the keypad.
Consumers are expected to load the first 20 KCT is Key Change Token (KCT 1) and the second token (KCT 2).
Consumers are expected to adopt one of the many ways they can get the KCTs by visiting kctcheck.ekedp.com and inputting their meter number and the KCTs will appear with a token. These processes can be concluded when they recharge.
STS upgrade impacts on EKEDC’s operations
Managing Director, Countryside Electricals, Mrs. Joy Oransanya, said that EKEDC will record significant gains over the STS upgrade.
She said that STS upgrade provides accurate and real-time energy monitoring for EKEDC. According to her, the meter upgrade ensures automatic recording and transmission of consumption data by the company at regular intervals.
“This data can be accessed by both consumers and utility companies, enabling them to monitor energy usage patterns more efficiently. Real-time monitoring empowers consumers to make informed decisions about their energy consumption, leading to more efficient energy management and potential cost savings,” she said.
She said the exercise will improve billing efficiency and accuracy ensuring the EKEDC benefits from reduced administrative costs and dispute resolution.
She said STS upgrade will enable EKEDC adopt dynamic pricing models that allows the company to implement effective energy distribution plan that suits its business and profitability schemes.
According to Oransanya, the STS upgrade would enable EKEDC to effectively monitor energy consumption and system performance remotely and save costs of operations.
“With this upgrade, EKEDC can easily detect issues such as power outages, voltage fluctuations, or abnormal energy consumption patterns remotely and promptly address them. This leads to faster issue resolution, improved overall service reliability and financial performance that will attract domestic and foreign investors,” she said.
Overall, the STS meter upgrade will provide accurate and real-time energy monitoring, improved billing accuracy, enhanced energy efficiency and remote monitoring among others.
More insights
Speaking during a customer’s forum in Ajah Lagos, Momoh stressed EKEDC’s commitment to enhancing electricity supply and addressing issues like transformer failures and load shedding, with resolutions planned by the end of 2024.
The token identifier is a secret code hidden in every energy token customers use on prepaid electricity meters, while STS is the global standard for the transfer of electricity and other utility prepayment tokens.
Ms. Momoh, who was represented by Joseph Esenwa, the company’s Chief Finance Officer, emphasised EKEDC’s commitment to improving electricity supply across its network.
Momoh explained the importance of upgrading meters, as outdated ones will need replacement at the customer’s cost.
She urged customers to load previous tokens before upgrading, as old tokens would no longer function post-upgrade.
Customers’ frustration
At the forum, some consumers expressed what they described as frustration with the current billing system, describing it as outrageous.
One of the EKEDC’s customers, Abdul Ali, expressed concerns about inadequate metering and the reliance on estimated billing, which they believe undermines the rationale for privatising the power sector.
To address these issues, Ali suggested establishing a task force comprising EKEDC officials and security operatives to monitor power supply conditions and coordinate efforts against vandalism and energy theft.
Michael Okafor, a resident of Rose Garden Estate, Ibeju-Lekki lauded EKEDC’s speedy response to faults while urging customers to support the protection of EKEDC’s facilities.
Edenye appealed to EKEDC management to engage workers on training to improve services and eliminate ad-hoc workers from the system.
Possible implications of missing the deadline
An electrical electronics expert, Lanre Adigun, said if the November 24 deadline passes and customers still refuse to get their meters normalised, then they may face having to purchase new meters altogether.
“I expect all vending customers’ meters to be fully upgraded by 24 November 2024. But if that does not happen, they will have to start dealing with new challenges, including getting new meters,” he said.
He noted that many customers are bypassing their meters to avoid paying for the electricity they use daily; “hence many are refusing technicians access for meter audits.
“EKDC’s goal should be to ensure all customers are metered and accounted for, and that everyone pays their fair share for electricity usage.
“It is also to ensure there is no misunderstanding of the process that will lead to effectively achieving this result and entrenching a smooth transition for all our customers,” Adigun said.
Meanwhile, other industry experts believe that the TID Rollover will enhance the integrity and functionality of prepaid meters. According to them, this initiative is crucial for accurate billing and updating the meter software security.
What compliant customers stand to gain
A Lagos-based engineer, Michael Otu, said compliance with the EKEDC’s demands will enable the operator reinforce its commitment to enhancing electricity supply and addressing issues like transformer failures and load shedding, with resolutions planned by the end of 2024.
EKEDC covers various areas within the Ajah Business Unit, including Ajah Ilaje, Oke-Ira, Addo, Sangotedo, Farapack Estate, Elemoro, Ibeju, Royal Gardens Maine and Medallion.
Others are Ajah, Okeira, Ogombo, Addo Road, Badore, Lamgbasa, Ajah-Ilaje, Lekki Scheme 2, Monastery Road, Okun Mopo, Ajiwe, Abraham Adesanya, Ajiwe, Ogombo, Urban Prime, among others.
He explained that the token identifier is a secret code hidden in every energy token customers use on prepaid electricity meters, while STS is the global standard for the transfer of electricity and other utility prepayment tokens.
He said that compliance with the new EKEDC’s demand will enable the electricity company to improve supply across its network, and ensure replacement of outdated meters at the customer’s cost.
Speaking against energy, infrastructure theft, and illegal connections, he reiterated that such practices, derail economic growth and development.
According to him, anyone found engaging in such vices, will be prosecuted, according to laws of the land.
Senate, funding plans, industry statistics
The Senate last year approved President Bola Tinubu’s request for sign-off on a $500 million World Bank loan to increase the supply of electricity meters across the country.
The request was approved for the Bureau of Public Enterprises this week after the Senate considered the report of its Committee on Local and Foreign Debts.
The $500m loan is part of the $7.94 billion World Bank loan which Tinubu sought the Senate’s approval for on 1 November 2023.
The government said previously that the metering programme is aimed at improving the financial and technical performance of electricity distribution companies (DisCos).
It falls under the World Bank funded Nigeria Distribution Sector Recovery Programme, DISREP.
The BPE is tasked with driving the Nigerian Federal Government’s programme of privatising public enterprises, “carrying out sector reforms and liberalisation of key economic sectors especially the infrastructure sector.”
Industry statistics from BPE showed metered power users in Nigeria increased from 3,976,940 in 2019 to 4,138,043 in 2020; 4,773,217 in 2021; 5,125,009 in 2022; 5,605,842 in 2023; and reached 5,907,644 in the first quarter of 2024.
This represents 4.1, 15.4, 7.4, 9.4, and 5.3 per cent growths respectively.The surge in metered customers equally translated to reduction in number of consumers on estimated billing, which is positive development for the industry.
As EKEDC continues with the STS meter upgrade plan, the it will continue to benefit from a positive impact on energy consumption patterns, utility operations, and overall customer satisfaction.
Leave a Comment