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BREAKING: NERC Lifts Restrictions On DISCO Meter Prices, Introduces Competitive Bidding Process

Published

7 months ago

Apr 29, 2024.

NERC Lifts Restrictions On DISCO Meter Prices, Introduces Competitive Bidding Process.
Prices for single-phase and three-phase meters revised as per ORDER NO: NERC/2024/040.
Competitive bidding process now determines meter prices, offering customers a choice of vendors.

EKO HOT BLOG reports that the Nigerian Electricity Regulatory Commission (NERC) has authorized the deregulation of meter prices for DISCOS through the Meter Asset Provider (MAP) scheme.

Additionally, the Commission has revised the price of a single-phase meter from N58,661.69 to N81,975.16 and a three-phase meter from N109,684.36 to N143,836.10.

These changes are detailed in ORDER NO: NERC/2024/040 issued by the Commission’s Chairman, Engr. Sanusi Garba, and Commissioner of Legal and Licensing Compliance, Barrister Dafe Akpeneye, on Monday.

EDITOR’S PICKS

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

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 Lifts Restrictions

NERC declared, “The commission hereby orders that, effective from 1 May 2024, a competitive bidding process shall determine all prices of meters under the MAP scheme, providing customers with a choice of authorized vendors.

“This derogates 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.

“The commission HEREBY DEREGULATES the cost of meters deployed under the MAP scheme to enable end-use customers to 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 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 commission stated that the removal of restrictions on permitting operations across all DisCos is contingent upon MAPs complying with the respective DisCo’s specific requirements and specifications.

Additionally, the commission emphasized that all DisCos must ensure the seamless integration of smart meters provided by MAPs with their head-end systems and meter data management systems.

Moreover, it was highlighted that DisCos are obligated to maintain a publicly accessible online portal on their websites, where potential MAPs can access the DisCo’s technical specifications and commercial terms for participation as a MAP within their network area.