In an effort to deregulate the market for meters and their pricing, the Nigerian Electricity Regulatory Commission (NERC) published an order on Monday about the deregulation rates for meters installed under the Meter Asset Provider (MAP) Scheme.
The commission stated in the decision that the action was required due to requests from MAPs and other operators for a more thorough examination of meter pricing, taking into account the notable fluctuations in inflation and foreign exchange rates that had occurred since NERC’s most recent price review in September 2023.
The statement stated that the notable fluctuations in these macroeconomic factors had limited the capacity of meters suppliers to offer meters at the authorized, regulated cost.
“The commission has noted the need for the efficient pricing of meters to respond more quickly to changes in macroeconomic parameters, particularly exchange rates.
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“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.
It added, “With effect from May 1, 2024, all prices of meters under the MAP scheme shall be determined through a competitive bidding process with customers provided with a choice of authorised vendors.”
As a result, NERC said it has henceforth deregulated the pricing of meters deployed under the MAP scheme.
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“The cost of prices of meters deployed under the MAP scheme is hereby deregulated to enable end-use customers acquire meters from MAPs of their choice based on competitive open market prices determined from transparent bidding frameworks,” the commission stated.
It said, “All MAP permit holders are henceforth eligible to provide services and transact for the provision of meters and metering services with any Disco in the Federal Republic of Nigeria with their existing permit.
“The lifting of the restriction on permitting to operate in all Discos is subject to the mandatory requirement for MAPs to comply with the associated Disco specific requirements/specifications.
“All Discos shall ensure the effective and seamless integration of smart meters deployed by MAPs with the Disco’s head-end systems and meter data management systems.”
