NERC Announces Deregulation Of Meter Prices From May 1

On Monday, the Nigerian Electricity Regulatory Commission (NERC) released a directive on the Deregulation of Meter Prices for meters deployed under the Meter Asset Provider Scheme.

It made it known that the prices of meters were deregulated after Meter Asset Providers and other operators requested a further review of meter prices in consideration of the significant changes in foreign exchange and inflation rates since the last price review of the meter prices by NERC in September 2023.

It said the significant changes in these macroeconomic variables had constrained the abilities of meter providers to supply meters at the approved regulated price.

“The commission has noted the need for the efficient pricing of meters to respond more quickly to changes in macroeconomic parameters, particularly exchange rates.

“The commission has further taken cognizance 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 authorized vendors.”

It said the combined effects of sections of the regulations on the regulated pricing of meters deployed under the MAP scheme was at this moment derogated.

“The cost of prices of meters deployed under the MAP scheme is at this moment deregulated to enable end-use customers to 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.”