The Nigerian government through its electricity market regulator (NERC) has announced the deregulation of electricity meter prices under the Meter Asset Provider (MAP) scheme.
The order, which shall take effect from Wednesday May 1st, was contained in a circular jointly signed by the Nigerian Electricity Regulatory Commission’s Chairman, Sanusi Garba, and its Commissioner, Legal, Licencing and Compliance, Dafe Akpeneye.
Recall that last September, the Nigerian government approved an upward review in the prices of pre-paid electricity meters in the country. The electricity market regulator however maintained that a further review of meter prices was necessary in consideration of significant changes in the NGN/USD foreign exchange rate as well as inflation rates since the last price review. It noted that substantial changes in the macroeconomic variables have constrained Meter Asset Providers (MAPs) and Local Meter Manufacturer/Assembler (LMMAs) from supplying meters at the approved regulated price.
The new order, according to the commission, required that the market shall be determined through a competitive bidding process with customers provided with a choice of authorised vendors. It said the commission had noted the need for the efficient pricing of meters to respond more quickly to changes in macroeconomic parameters, particularly exchange rates.
The Commission authorised all MAP permit holders as being eligible to provide services and transact for the provision of meters and metering services with any DisCo in the Federal Republic of Nigeria with their existing permit.
Reacting to the move, the Executive Secretary of the Lawyers in Energy Network, Mrs Raqeebah Oloko hailed the decision, describing it as economically laudable and necessary for the growth of the electricity metering market in Nigeria. She noted that the move would send a good signal to potential investors in the industry, while calling for a full scale price deregulation of the Industry. According to her it will “enable the market flourish on forces of demand and supply as is the case with more developed ecosystems around the world”