UK, Enugu govt introduce smart metre to curb energy theft, revenue losses

2026-03-25 - 21:13

The Enugu State Government and the United Kingdom, through its United Kingdom Nigeria Infrastructure Advisory Facility (UKNiAF) have successfully carried out a pilot programme introducing an AI-enabled smart metering system to curtail energy theft and eliminate revenue losses in the power sector. This was made known at the Enugu State Investor Forum themed “Driving Revenue Assurance and Private Investment through Data-Driven Metering,” which took place at the International Conference Centre, Enugu, on Tuesday. The event funded by the UK International Development and implemented by Tetra Tech brought together key sector stakeholders, including electricity distribution companies, investors, and policymakers, to explore opportunities for expanding smart metering and improving electricity access in Enugu State. It also focused on strengthening Nigeria’s capacity to deliver sustainable and climate-smart infrastructure, with Enugu State as a key beneficiary. Speaking at the event, Chairman and Chief Executive Officer of the Enugu State Electricity Regulatory Commission, Mr Chijioke Okonkwo, said the project was designed to address persistent challenges of revenue leakages, energy theft, and poor billing efficiency in the power sector. He disclosed that a pilot scheme involving the deployment of 846 smart meters had already been carried out in the Ugwuaji axis of the state capital, covering surrounding semi-urban communities. According to Okonkwo, the pilot enabled full tracking of electricity consumption from transformers to individual households. “This system allows us to drastically reduce, if not eliminate, commercial and collection losses, which have long hindered the growth of the power sector,” he said. He explained that the AI-enabled meters provide real-time data on energy usage, empower consumers to monitor their consumption, and help operators quickly detect faults or irregularities, including theft and equipment vandalism. The regulator noted that the initiative also opens opportunities for private investors and energy retail companies to participate in Enugu’s electricity market, particularly in underserved areas. “We are inviting investors to take advantage of this opportunity by deploying smart meters, expanding distribution networks, and even establishing embedded power generation within the state,” he added. He said current market prices for meters stand at approximately N130,000 for single-phase units and about N230,000 for three-phase units, adding that flexible payment structures could be arranged to ease adoption. Also speaking, Team Leader of UKNiAF, Mr Frank Edozie, described the project as a “demonstrator” of how artificial intelligence could enhance transparency and accountability in electricity revenue collection. “The system ensures that all revenues due to the sector are properly collected and accounted for. It also detects any breach in energy or financial flows, making it a strong revenue assurance mechanism,” Edozie said. He observed that Enugu was selected for the pilot due to its leading role in implementing reforms under Nigeria’s Electricity Act 2023, which empowers states to develop independent electricity markets. According to him, the pilot project, which commenced in November 2025, had already shown encouraging results, including significant improvements in revenue recovery and reduction in losses. In his remarks, Managing Director of MainPower Electricity Distribution Limited, Dr Ernest Mupwaya, said the initiative addresses two critical issues in the power sector—metering gaps and revenue protection. He emphasised that without efficient metering and strong revenue assurance systems, investments in the power sector would remain unattractive and unsustainable. “Smart metering, combined with advanced monitoring systems gives utilities visibility across their networks, making it easier to detect losses and improve operational efficiency,” he said. Mupwaya added that the project has demonstrated the viability of attracting private financing into metering infrastructure, noting that improved revenue collection would enable operators to repay investments over time. Earlier, Enugu State Commissioner for Trade, Investment and Industry, Sam Ogbu-Nwobodo, said the state was selected for the initiative due to ongoing reforms and progress in its electricity market. He explained that the successful pilot had shown that smart metering could guarantee revenue assurance across the electricity value chain—from generation to distribution—thereby boosting investor confidence. “The system assures investors that they will recover their investments, which is critical for attracting funding into power generation, transmission, and distribution,” he said.