The Nigerian Electricity Regulatory Commission (NERC), in a move to deregulate the metre supply and pricing market, released an order on the deregulation of prices for metres deployed under the Meter Asset Provider (MAP) Scheme.
The commission said the move was necessary after MAPs and other operators requested a further review of metre prices in consideration of the significant changes in foreign exchange and inflation rates since NERC’s last price review in September 2023.
This will place more control in the hands of consumers, fostering transparency and accountability within the electricity sector.
In the circular released, as from May 1, all prices of meters under the MAP scheme will be determined through a competitive bidding process with customers provided with a choice of authorised vendors.
The cost price of meters deployed under the MAP scheme is thereby to enable end-use customers to acquire meters from MAPS of their choice based on competitive open market prices determined from transparent bidding frameworks, NERC said.
This development is expected to foster transparency and reduce prices, as customers will have the freedom to select their preferred meter providers among those authorised under the scheme.
The commission said the move was necessitated after MAPs and other operators requested a further review of metre prices in consideration of the significant changes in foreign exchange and inflation rates since NERC’s last price review in September 2023.
It said the significant changes in these macroeconomic variables particularly exchange rates had constrained the abilities of metre providers to supply metres at the approved regulated price.
The NERC has approved an increase in the prices of single-phase electricity meters to N81,975.16 and three-phase meters was increased to N143,836.10.
The commission has further taken cognisance of the constraints/challenges faced by MAPs and LMMAs and therefore approved the deregulation of prices of meters deployed under the MAP scheme with effect from May 1, 2024, NERC stated
The deregulation lifts previous restrictions, allowing all MAP permit holders to provide services across all Electricity Distribution Companies (DisCos) in the country provided they meet specific requirements.
This broader operational scope is anticipated to increase competition among MAPs, potentially leading to better services and innovations in metering solutions.
Also, measures have been placed to ensure the timely installation of meters, with penalties for MAPs that fail to meet installation deadlines.
The deregulation also introduces flexibility in the types of meters available under the MAP scheme.
While deregulating meter prices, NERC will oversee the submission of price offers from MAPs to ensure fair competition
This includes a requirement for MAPs to hold a minimum stock of 2,000 units of meters as an eligibility criterion for participation in the bidding process
