The Nigerian government has announced the deregulation of electricity meter prices under the Meter Asset Provider (MAP) scheme effective May 1, 2024.
The Nigerian Electricity Regulatory Commission (NERC) said this on Monday in a circular jointly signed by the commission’s Chairman, Sanusi Garba, and its Commissioner, Legal, Licencing and Compliance, Dafe Akpeneye.
The new order, according to the commission, shall be determined through a competitive bidding process with customers provided with a choice of authorised vendors.
Last September, the Nigerian government approved an upward review in the prices of pre-paid electricity meters in the country.
The price of the single-phase meter (4G, bright) was increased to N81,975.16 from N58,661.6, while the price of a Three-phase meter (4G, smart) was raised from N109,684.36 to N143,836.10.
But in its circular on Monday, NERC said Meter Asset Providers (MAPs) and the Local Meter Manufacturer/Assembler (LMMAs) have requested a further review of meter prices in consideration of significant changes in the NGN/USD foreign exchange rate and inflation rate since the last price review in September 2023.
The substantial changes in these macroeconomic variables have constrained their ability to supply meters at the approved regulated price.
It said the commission had 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 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 1 May 2024.
“The cost of prices of meters deployed under the MAP scheme is hereby 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 circular read.
The commission explained that 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.
It said 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 and meter data management systems.
“All DisCos shall provide a publicly accessible online portal on their website where prospective MAPs can view the DisCo’s technical specifications and commercial terms for participation as a MAP within its network area,” it said.
It noted that all DisCos are required to conduct a thorough test and confirm specifications for new meters proposed by a prospective MAP.
They conclude no later than 20 working days from the date the proposed MAP fulfils all the requirements specified on the online portal to participate within its network area.
Where a meter fails the confirmation test, it said, the DisCo shall immediately notify the MAP stating the points of failure.
It added that meters to be deployed under the MAP scheme may include other types of meters, including basic electronic meters, Internet of Things (loT) meters, DIN Rail meters and Current Limiters, but subject to full compliance with the Nigerian Electricity Supply Industry (NESI) Metering Code and the requirements/specifications of DisCos.
“The type of meter applicable to a customer under the MAP scheme shall be at the discretion of the DisCo regarding the customer’s energy consumption profile.
“The pricing of meters under the MAP scheme is hereby deregulated but subject to open, transparent competition amongst MAP permit holders.
The commission shall, in the interim, manage the process of submitting price offers valid for one month (or as may be determined by the Commission) for meters deployed under the MAP scheme to engender transparency and competition.
“This order is issued without prejudice to existing obligations and commitment of DisCo to existing MAPs,” it said
Source: https:// energynewsafrica.com
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