- NERC declares the deregulation of meter prices, allowing DisCos and meter manufacturers to set prices nationwide
- Meter manufacturers advocate for deregulation due to inflation, arguing fixed prices led to operational losses despite previous adjustments
The Nigerian Electricity Regulatory Commission (NERC) has declared the deregulation of meter prices under the Meter Assets Provider (MAP) scheme. This move enables Distribution Companies (DisCos) and meter manufacturers to set the prices of electricity meters nationwide.
Under this arrangement, DisCos reimburses consumers for the cost of meters through electricity credits spread over 10 years.
Meter manufacturers have long advocated for the liberalization of meter prices due to inflation and the fluctuating dollar value. They argue that fixed prices set by NERC have led to operational losses.
Despite NERC’s previous price adjustments in September last year, meter manufacturers have continued their plea for deregulation. Single-phase meter prices rose to N81,975.16 from N58,661.69, and three-phase meters increased to N143,836.10 from N109,684.36.
In an order signed by NERC’s Chairman, Sanusi Garba, and Commissioner of Legal, Licensing, and Compliance, Dafe Akpeneye, all meter prices under the MAP scheme will now be determined through competitive bidding.
Effective May 1, 2024, customers can purchase meters from authorized vendors through competitive bidding processes.
The deregulation aims to foster transparency and competition in the market. MAP permit holders are now authorized to provide metering services to any DisCo in Nigeria, subject to compliance with specific requirements.
NERC will oversee the submission of monthly price offers for meters to ensure transparency and competition. This interim measure will pave the way for a transparent bidding framework.