NERC Announces Deregulation of Metre Prices Starting May 1

Joy ChukwuApril 30, 20241 Mins read239

On Monday, the Nigerian Electricity Regulatory Commission (NERC) announced a change in metre pricing regulations for metres installed under the Metre Asset Provider Scheme.

This adjustment comes after requests from providers and other stakeholders to reconsider prices due to significant shifts in foreign exchange rates and inflation since the last review in September 2023.

The commission acknowledged the challenges metre providers face due to these economic changes, prompting a decision to deregulate metre prices starting May 1, 2024.

It said:

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

“The commission has further considered the constraints/challenges faced by MAPs and LMMAs and, therefore, approved the deregulation of the prices of meters deployed under the MAP scheme with effect from May 1, 2024.

“With effect from May 1, 2024, all metre prices under the MAP scheme shall be determined through a competitive bidding process, with customers provided with a choice of authorised vendors,” NERC stated.

It added that specific regulations concerning the pricing of metres under the MAP scheme will no longer apply. Instead, customers can purchase metres from their preferred MAPs at market-driven prices established through transparent bidding frameworks.

MAP permit holders are now permitted to operate with any Distribution Company (Disco) in Nigeria, subject to compliance with specific Disco requirements.

All MAP permit holders are henceforth eligible to provide services and transact for the provision of metres and metring 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 that MAPs 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,” the statement said.

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