Metering and Investment in Nigerian Electricity Distribution Market

Okorie Stanley

DisCos, Energy, Electricity Market, investment , Metering.

The National Electricity Regulatory Commission adopted different incentive mechanisms to ensure that the electricity distribution firms undertake sufficient investments to improve the quality of service to public. Hence, the study examined the metering and investments undertaken by the eleven (11) DisCos in Nigeria from 2014 to 2015 after the successful unbundling of the industry. Analysis of variance was employed to provide a statistical inference by taking into account the nature of physical investments by the DisCos. The results showed that there in an increase in the investment, but the increase was insignificant and implies low metering investments in the study areas. The results confirm that DisCos have partly responded to the investment and metering in their franchise areas, but it is inadequate to drive the industry. It is therefore recommended that the NERC should create more incentive and investment credit guarantee schemes to encourage more investment and metering in the Nigerian electricity supply industry .