In a significant development, the Nigerian Electricity Regulatory Commission (NERC) declared on Monday the deregulation of meter prices for meters utilized in the Meter Asset Provider Scheme (MAP).
The decision to free up meter prices comes following appeals from Meter Asset Providers (MAPs) and other industry stakeholders for a review of meter prices, considering significant changes in foreign exchange rates and inflation since NERC last examined meter prices in September 2023.
NERC highlighted the necessity for more responsive pricing mechanisms to adapt swiftly to shifts in macroeconomic factors, particularly exchange rates.
“The commission has noted the need for the efficient pricing of meters to respond more quickly to changes in macroeconomic parameters, particularly exchange rates,” NERC stated.
Taking into account the challenges faced by MAPs and Local Meter Manufacturers (LMMAs), NERC approved the deregulation of meter prices deployed under the MAP scheme, effective May 1, 2024.
“With effect from May 1, 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,” NERC added.
This move towards competitive pricing through a bidding process aims to foster transparency and provide consumers with options while ensuring the efficient deployment of meters across the electricity distribution network.
The deregulation of meter prices under the MAP scheme marks a significant step towards addressing challenges related to metering in the electricity sector, enhancing access to meters for consumers, and promoting a more efficient and sustainable electricity supply system.
