The Nigerian Electricity Regulatory Commission (NERC) has issued an order regarding the deregulation of meter prices under the Meter Asset Provider (MAP) Scheme.
The decision comes after requests from Metre Asset Providers and other stakeholders for a review of metre prices due to significant changes in foreign exchange and inflation rates since the last price review in September 2023.
Acknowledging the impact of these macroeconomic variables on metre providers’ ability to supply metres at the approved regulated price, NERC has approved the deregulation of metre prices effective May 1, 2024. This move aims to enable more efficient pricing of metres, particularly in response to fluctuations in exchange rates.
Under the new regulations, all metre prices under the MAP scheme will be determined through a competitive bidding process starting on May 1, 2024. Customers will have the option to choose from authorised vendors, fostering a competitive, open market environment.
Furthermore, NERC has derogated sections of the regulations related to the regulated pricing of metres under the MAP scheme. The deregulation allows end-use customers to acquire metres from MAPs of their choice based on competitive open market prices established through transparent bidding frameworks.
Additionally, all MAP permit holders are now eligible to provide services and transact for the provision of metres and metering services with any Distribution Company (Disco) in Nigeria, subject to compliance with Disco-specific requirements and specifications. Discos are mandated to ensure the effective integration of smart meters deployed by MAPs with their head-end systems and metre data management systems for seamless operations.
This order marks a significant shift in the regulation of metre prices under the MAP scheme, aiming to enhance efficiency and provide consumers with more choices in acquiring metres.
