NERC to stop fixing price of meters

The Nigerian Electricity Regulatory Commission (NERC) has announced the deregulation of meter prices under the MetER Assets Provider (MAP) scheme, thereby making DisCos and meter manufacturers to determine the price of electricity meters across the country.

Daily Trust reports that the MAP is a scheme where consumers pay for meters on behalf of the DisCo in their franchise area.

The Disco in turn pays back the meter in form of electricity credit in annuity over a period of 10 years.

Recall that the meter manufacturers have covered the years campaigning for the liberalisation of the price of meters due to the rising inflation and price of dollar which they said is making them operate at a loss with the continuous regulations of its price which is determined by NERC.

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The agitation is despite NERC increasing the price in September last year for Single Phase meter increase to N81,975.16 from N58,661.69 while Three Phase meter increased to N143,836.10 from N109,684.36.

In an order signed by NERC’s Chairman and Commissioner of Legal, Licensing and Compliance, Sanusi Garba and Dafe Akpeneye respectively, yesterday stated that henceforth, electricity consumers will purchase meters through competitive bidding.

“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 of their choice based on competitive open market prices determined from transparent bidding frameworks.”

“All MAP permits 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 theRestriction on permitting to operate in all DisCos is subject to the mandatory requirement for MAPs to comply with the associated DisCo specific requirements/specifications.

It however said the Commission will in the interim manage the process of submitting price offers valid for one month (or as may be determined by the Commission) for meters to engender transparency and competition based on the following bid process.