The Nigerian Electricity Regulatory Commission (NERC) has officially declared the deregulation of electricity meter prices under the Meter Asset Provider (MAP) scheme, set to take effect on May 1, 2024. This shift comes in response to requests from MAPs and other stakeholders for a review considering the substantial shifts in foreign exchange and inflation rates since the last regulated price adjustment in September 2023.
The commission recognized that the prevailing macroeconomic conditions had hampered the ability of meter providers to furnish meters at the previously set prices. "The need for more dynamically priced meters has become apparent, allowing quicker adjustment to macroeconomic fluctuations, particularly in exchange rates," NERC noted in its announcement.
With the new policy, starting tomorrow, meter prices under the MAP scheme will be established through a competitive bidding process, empowering customers with a variety of authorized vendors from which to choose. This move aims to enhance transparency and competitiveness in meter provisioning, ultimately benefiting the consumers.
NERC has also lifted certain restrictions, allowing all MAP permit holders to operate across different Distribution Companies (Discos) in Nigeria, provided they adhere to the specific requirements and standards of the respective Discos. "This deregulation ensures that MAPs can offer services and transact across all Discos in the country under their existing permits," the commission explained.
In addition, Discos are required to ensure the efficient integration of smart meters installed by MAPs into their systems. This involves aligning with the Discos' head-end systems and meter data management systems to maintain seamless operation and service delivery.
This policy change marks a significant step in adapting Nigeria's energy sector regulations to better align with current economic realities, fostering a more flexible and responsive marketplace for electricity metering.
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