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Following an increase in tariffs, NERC raises the cost of single and three phase metres

May 2, 2024 | Politics | 0 comments

After announcing an increase in electricity tariffs for Band A customers, the Nigerian Electricity Regulatory Commission (NERC) has made adjustments to the prices of single-phase and three-phase meters. The single-phase meter price has been raised from N58,661.69 to N81,975.16, while the three-phase meter price has been adjusted from N109,684.36 to N143,836.10.

These changes were outlined in an order titled “The Deregulation of Meter Prices for Meters Deployed under the Meter Asset Provider Scheme,” signed by NERC chairman Engr Sanusi Garba and the commissioner in charge of legal licensing compliance, Barrister Dafe Akpeneye on Monday, April 29, 2024.

The order cites requests from Meter Asset Providers (MAPs) and Local Meter Manufacturers Associations (LMMAs) for a review of meter prices due to significant changes in the NGN/USD foreign exchange rate and inflation rate since the last price review in September 2023. These macroeconomic shifts have impacted their ability to supply meters at the approved regulated prices.

Garba and Akpeneye highlighted the need for efficient meter pricing to respond to changes in macroeconomic parameters, especially exchange rates. Therefore, the commission approved the deregulation of meter prices deployed under the MAP scheme, effective May 1, 2024.

The order mandates that all meter prices under the MAP scheme will be determined through a competitive bidding process, allowing customers to choose from authorized vendors. Sections of the regulations governing the regulated pricing of meters under the MAP scheme are derogated to facilitate this deregulation.

NERC emphasized that the choice of meters will be based on competitive open market prices determined through transparent bidding frameworks. All MAP permit holders are now eligible to provide services and transact for the provision of meters and metering services with any Distribution Company (DisCo) in Nigeria, subject to compliance with DisCo-specific requirements.

Furthermore, DisCos is required to ensure the effective integration of smart meters deployed by MAPs with their head-end systems and meter data management systems. They must also provide publicly accessible online portals on their websites for prospective MAPs to view technical specifications and commercial terms for participation within their network areas.

Lastly, DisCos are mandated to conduct thorough tests and confirm specifications for new meters proposed by prospective MAPs, ensuring compliance with requirements specified on the online portal within 20 working days.

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