BREAKING: FG Deregulates Meter Prices, Set New Price For All Pre-Paid Meter Phases

FG has deregulated meter prices and also announced new price for all pre-paid meter phases across Nigeria.

NewsOnline Nigeria reports that the Federal Government through the Nigerian Electricity Regulatory Commission (NERC) has approved the deregulation of meter prices for DISCOS under the Meter Asset Provider (MAP) scheme.

This Nigeria news platform understands that the Commission also adjusted the price of a single-phase meter from N58,661.69 to N81,975.16 and that of a three-phase meter from N109,684.36 to N143,836.10.

The title of the order is “The deregulation of meter prices for meters deployed under the Meter Asset Provider Scheme.”

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The statement noted that with effect from 1 May 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.

The NERC statement said “the Meter Asset Provider and National Mass Metering Regulations (the “Regulations”) provide for the metering of end-use customers of successor electricity distribution licensees (“DisCos”). Section 8(1 )(c) of the Regulations provides that “the cost of single phase and three phase meters for MAPs, inclusive of all other associated costs of installation and warranties shall continue to be at the regulated rates approved by the Commission.”

NERC said the Meter Asset Providers ((MAPs) and Local Meter Manufacturers Associations (LMMAs) have requested a further review of meter prices in consideration of significant changes in NGN/USD foreign exchange rate and inflation rate since the last price review in September 2023 and the significant changes in these macroeconomic variables has constrained their ability to supply meters at the approved regulated price.

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

According to them: “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.”

NERC said, “The commission hereby orders: with effect from 1 May 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.

“The combined effects of sections 8(1 )(c), 8(1 )(d), 16(1 )(h), 31 and 32(1 )(b) of the Regulations on the regulated pricing of meters deployed under the MAP scheme is hereby derogated.

“The cost of prices of meters deployed under the MAP scheme is HEREBY DEREGULATED to enable end use customers acquire meters from MAPs.”

NERC noted that the choice is based on competitive open market prices determined from transparent bidding frameworks.

The order noted 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.

According to the commission, 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.

The commission added that all DisCos shall ensure the effective and seamless integration of smart meters deployed by MAPs with DisCo’s head-end systems and meter data management systems.

It further noted that 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.

NERC disclosed that all DisCos are required to conduct a thorough test and confirmation of specifications for new meters proposed by a prospective MAP and 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.