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NERC de-regulates metre prices

NERC de-regulates metre prices

NERC de-regulates metre prices

The Nigerian Electricity Regulatory Commission (NERC) has issued an order deregulating metre prices for metres deployed under the Metre Asset Provider Scheme.

According to NERC, this decision comes in response to requests from Metre Asset Providers and other operators for a review of metre prices due to significant changes in foreign exchange and inflation rates since NERC’s last price review in September 2023.

NERC noted that these macroeconomic changes have constrained metre providers’ ability to supply metres at the approved regulated price.

“The Commission has noted the need for the efficient pricing of metres to respond more quickly to changes in macroeconomic parametres, particularly exchange rates,” NERC stated.
Furthermore, NERC acknowledged the challenges faced by Metre Asset Providers and Large Metre Manufacturers (LMMAs), leading to the approval of metre price deregulation under the MAP scheme, effective May 1, 2024.

From May 1, 2024, all metre prices under the MAP scheme will be determined through a competitive bidding process, providing customers with a choice of authorised vendors, as outlined by the Commission.

NERC derogated sections of the regulations pertaining to the regulated pricing of metres deployed under the MAP scheme. Metre prices are now deregulated, allowing end-users to acquire metres from MAPs of their choice based on competitive open market prices determined by transparent bidding frameworks.

Furthermore, all MAP permit holders are now eligible to provide services and transact for metre provision and metreing services with any Disco in Nigeria, subject to compliance with specific Disco requirements, as stated by the commission.

NERC directed all Discos to ensure the effective integration of smart metres deployed by MAPs with the Disco’s head-end systems and metre data management systems for seamless operation.

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