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NERC deregulates meter prices under MAP, subjects to competitive bidding

BY AKUDORO GLORIA

In compliance with sections 8(1), 16(1), 19(1), 31 and 32 of the National Mass Metering Regulations (the Regulations), the Nigerian Electricity Regulatory Commission (NERC) has deregulated the cost of prices of meters deployed under the Meter Asset Provider Scheme with effect from 1 May, 2024.

Part of the Regulations reveals that “the cost of single phase and three phase meters for MAPs, inclusive of all other associated costs of installation and warranties shall continue to be at the regulated rates approved by the Commission; and that the prudent cost of single and three phase meters for all Meter Asset Providers (MAPs) shall be adjusted to align with the outcome of the competitive procurement process conducted under the National Mass Metering Programme (NMMP)”.

This was contained in a release titled “Order on the Deregulation of Meter Prices for Meters Deployed under the Meter Asset Provider Scheme with Order No: NERC/2024/040” and jointly signed by the NERC Chairman, Sanusi Garba and the Commissioner, Legal, Licensing and Compliance, Dare Akpeneye, on 29 May 2024.

Recall that in 2023, the NERC approved the upward review of meter prices for single phase and three-phase meters. However, following the review, the price of the single-phase metre increased from N58,661.69 to N83,975.16, while the price of the three-phase metre, which was previously sold for N109,685.36, increased to N143,836.14.

However, the released Order reveals that the deregulation of meter prices under the MAP scheme are subjected to an open transparent competitive bidding process among MAP permit holders with end-use customers provided with a choice of authorized vendors.

According to the Commission’s Order, “With effect from 1 May 2024, all prices of meters under the MAP schemeshall be determined through a competitive bidding process with customersprovided with a choice of authorised vendors.

“The combined effects of sections 8(1 )(c), 8(1 )(d), 16(1 )(h), 31 and 32(1 )(b)of the Regulations on the regulated pricing of meters deployed under theMAP scheme is hereby derogated.

“The cost of prices of meters deployed under the MAP scheme is HEREBYDEREGULATED to enable end.use customers acquire meters from MAPs of their choice based on competitive open market prices determined fromtransparent bidding frameworks.

“All MAP permits holders are henceforth eligible to provide services andtransact for the provision of meters and metering services with any DisCo inthe Federal Republic of Nigeria with their existing permit. The lifting of therestriction on permitting to operate in all DisCos is subject to the mandatoryrequirement for MAPs to comply with the associated DisCo specificrequirements/specifications.

“All DisCos shall ensure the effective and seamless integration of smart meters deployed by MAPs with the DisCo’s head-end systems and meter datamanagement systems.

“All DisCos shall provide a publicly accessible online portal on their websitewhere prospective MAPs can view the DisCo’s technical specifications andcommercial terms for participation as a MAP within its network area.

“All DisCos are required to conduct a thorough test and confirmation ofspecifications for new meters proposed by a prospective MAP and concludedno later than 20 working days from the date the proposed MAP fulfils all the
requirements specified on the online portal to participate within its networkarea. Where a meter fails the confirmation test, the DisCo shall immediatelynotify the MAP stating the points of failure.

“Meters to be deployed under the MAP scheme may include other types of meters including basic electronic meters, Internet of Things (loT) meters, DINRail meters and Current Limiters but subject to full compliance with the NESI Metering Code and the requirements/specifications of DisCos. The type ofthe meter applicable to a customer under the MAP scheme shall be at thediscretion of the DisCo having regard to the customer energy consumption
profile.

“The pricing of meters under the MAP scheme is hereby deregulated butsubject to an open transparent competition amongst MAP permit holders. TheCommission shall, in the interim, manage the process of submitting price offers
valid for one month (or as may be determined by the Commission) for metersdeployed under the MAP scheme to engender transparency and competition”.

The Commission by extension said that the bidding competition shall be based on the following process: “All MAP Permit holders wishing to participate in each competitive
bidding cycle shall, no later than 5 days prior to the commencementof the process, provide verifiable evidence confirming the availability of a minimum stock of 2,000 units of meters. This is a mandatoryeligibility requirement for participation in the bidding process.

“At the commencement of each session for the submission of meter prices by MAP Permit holders, the Commission shall send a dedicated
link to the authorised email address of the participants. The dedicated link grants access to the Meter Price Bid Form which is completed and submitted online to the Commission.

“There shall be a window of one hour (11:OOam and 12:O0noon) on the last working day of each month (or otherwise determined by the
Commission) for the submission of unit price for different specifications of meters through the web link provided by the Commission. MAPs that intend to participate in the bid process for any DisCo shall be required to complete and submit the form within one hour of receipt of the weblink. The adoption of the online link for bid submissions shall remain inforce until amended or discontinued by the Commission”.

NERC further noted that all DisCos shall, at the end of each month, file with the Commission areturn showing the meter supply and installation performance of eachMAP for the month. Any MAP that fails, for more than 10% ofcustomers, to install a meter at the premises of the end-use customerwithin the prescribed 10 working days after payment by the customershall be disqualified from uploading meter prices in the next pricedetermination window.

Its said that any MAP that fails to install a meter at the customer’s premises within10 working days after date of payment, shall, through the DisCo, paythe customer with preloaded energy credits of N500 and N1,000 forsingle phase and three phase meters respectively upon installation ofthe meter for each day of default.

All DisCos are required to provide a dedicated bank account forpayments made by customers for meters under the MAP scheme and
operational mandate of the account shall be as provided in agreementsigned with the MAP.

According to NERC, “This Order is issued without preudice to existing obligations and commitmentsof DisCos to existing MAPs”.

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