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Monday, May 20, 2024

Nigerian Electricity Regulatory Commission deregulates meter prices

Move Aims to Address Economic Challenges and Enhance Customer Choice

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In a bid to adapt to shifting economic realities and empower consumers, the Nigerian Electricity Regulatory Commission (NERC) has announced the deregulation of meter prices under the Meter Asset Provider Scheme, effective from May 1, 2024.

The decision, outlined in a statement released on Monday, follows requests from Meter Asset Providers (MAPs) and other industry stakeholders for a review of meter prices, citing significant changes in foreign exchange rates and inflation since the last price review in September 2023.

Acknowledging the impact of these macroeconomic variables on the ability of meter providers to supply meters at regulated prices, NERC emphasized the need for a more responsive pricing mechanism, particularly in light of fluctuating exchange rates.

In granting approval for the deregulation of meter prices, NERC aims to foster efficiency and competitiveness in the market, offering customers the opportunity to choose from a range of authorized vendors through a competitive bidding process.

The commission underscored the importance of transparency in determining meter prices, affirming that the move would enable end-users to acquire meters based on competitive open market prices established through transparent bidding frameworks.

Furthermore, NERC lifted restrictions on MAPs, permitting them to provide services and transact with any Distribution Company (Disco) in Nigeria, subject to compliance with specific requirements and specifications set forth by each Disco.

As the deregulation takes effect, all Discos are tasked with ensuring seamless integration of smart meters deployed by MAPs with their head-end systems and meter data management systems, ensuring a smooth transition for consumers and stakeholders alike.

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