The Nigerian Electricity Regulatory Commission (NERC) has released an order on the deregulation of meter prices under the Meter Asset Provider (MAP). In the order released yesterday, NERC stated that the pricing is now subject to open, transparent competition amongst MAP permit holders.
This order also allows customers to acquire meters from MAPs of their choice based on competitive open market prices determined from transparent bidding frameworks.
The federal government, alongside the Central Bank of Nigeria (CBN), established the MAP under the National Mass Metering Programme in October 2020 to address the country’s metering shortfalls. However, this programme has also raised concerns from metering manufacturers and providers about the federal government’s meter price cap.
These issues have prompted the Tinubu-led government to review the structure under the MAP scheme. This new order will permit the deployment of several types of meters under the MAP scheme, including basic electronic meters, Internet of Things (loT) meters, DIN Rail meters, and Current Limiters.
These meters will be subject to full compliance with the NESI Metering Code and the requirements/specifications of DisCos.
What to Know About the New Order:
- Customers can now choose from which authorised MAP vendors to buy meters.
- NERC will arrive at the price of meters from a competitive bidding process by MAP vendors.
- To qualify for the bidding process on the meter prices, the MAP Permit holders must provide verifiable evidence of having a minimum stock of at least 2,000 meter units.
- All MAP permit holders are to provide services and transact with any Distribution Companies (DisCo) in Nigeria using their existing permit.
- NERC will consider any MAP that fails to upload/submit a meter price bid ineligible.
- The meter prices by MAPs will remain valid for the succeeding month or until NERC opens another price offer window.
- NERC will disqualify any MAP that fails to install a meter at the end-use customer’s premises for more than 10 per cent of customers within the prescribed ten working days of the customer’s payment from uploading meter prices in the subsequent price determination window.
- The defaulting MAP permit holders will, through DisCos, pay the customer with preloaded energy credits of N500 and N1,000 for single-phase and three-phase meters, respectively, after installing the meter for each day of default.
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