The Nigerian Electricity
Regulatory Commission (NERC) yesterday revealed that it has adjusted the price
of a single phase meter from N58,661.69 to N81,975.16.
Similarly, it adjusted the price
of the three phase meter from N109,684.36 to N143,836.10.
The adjustments are contained in
the ORDER NO: NERC/2024/040 that the commission's Chairman, Engr. Sanusi Garba
and Commissioner Legal and Licensing Compliance, Barrister Dafe Akpeneye issued
yesterday.
The title of the order is
"The deregulation of meter prices for meters deployed under the Meter
Asset Provider Scheme."
The Chairman and Commissioner
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.
Garba and Akpeneye said the
commission has noted the need for the efficient pricing of meters to respond
more quickly to changes in macroeconomic parameters, particularly exchange
rates.
"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
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.
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 the 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.
Garba and Akpeneye said all
DisCos are required to conduct a thorough test and confirmation of
specifications for new meters proposed by a prospective MAP and concluded no
later than 20 working days from the date the proposed MAP fulfills all the
requirements specified on the online portal to participate within its network
area.
They insisted that "Where a
meter fails the confirmation test, the DisCo shall immediately notify the MAP
stating the points of failure. Meters to be deployed under the MAP scheme may
include other types of meters including basic electronic meters, Internet of
Things (loT) meters, DIN Rail meters and Current Limiters but subject to full
compliance with the NESI Metering Code and the requirements/specifications of
DisCos. "The type of the meter applicable to a customer under the MAP
scheme shall be at the discretion of the DisCo having regard to the customer
energy consumption profile.
"The pricing of meters under
the MAP scheme is hereby deregulated but subject to an open transparent
competition amongst MAP permit holders.
"The Commission shall, in
the interim, manage the process of submitting price offers valid for one month
(or as may be determined by the Commission) for meters deployed under the MAP
scheme to engender transparency and competition based on the following bid
process:
"All MAP Permit holders
wishing to participate in each competitive bidding cycle shall, no later than
five days prior to the commencement of the process, provide verifiable evidence
confirming the availability of a minimum stock of 2,000 units of meters. This
is a mandatory eligibility requirement for participation in the bidding
process."
Leave Comments