…introduces competitive bidding for customers
… permits electricity customers sole right to choose their preferred MAP
… MAPs face N500/N1,000 daily fines for delayed prepaid meter installations- Commission warns
Oredola Adeola
The Nigerian Electricity Regulatory Commission (NERC) has approved the deregulation of prices of meters deployed under the Meter Asset Provider (MAP) scheme, effective from May 1, 2024.
This is coming on the sideline of the requests from Meter Asset Providers (MAPs) and Local Meter Manufacturers and Assemblers (LMMAs) seeking 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.
This was contained in the Commission’s order number “NERC/2024/040”, on the deregulation of the meter prices for prepaid meters deployed under the MAP scheme, jointly signed by Sanusi Garba, NERC Chairman and Dafe Akpeneye, Commissioner, legal, Licensing & Compliance, dated April 29, 2024, and obtained by Advisors Reports.
Advisors Reports have revealed that in September 2023, the price review of meters showed a significant adjustment. The Single-Phase meter price increased from N58,661.69 to N81,975.16, while the Three-phase meter price saw an upward revision from N109,684.36 to N143,836.10.
According to the Commission with effect from 1 May 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 also said that 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 the MAP scheme are hereby derogated.
The news regulation stated that “The cost of prices of meters deployed under the MAP scheme is HEREBY DEREGULATED to enable end-use customers to acquire meters from MAPs of their choice based on competitive open market prices determined from transparent bidding frameworks.
“All MAP permit holders are henceforth eligible to provide services and transact for the provision of meters and metering services with any DisCo in Nigeria with their existing permit.
“The lifting of the restriction on permitting to operate in all DisCos is subject to the mandatory requirement for MAPs to comply with the associated DisCo-specific requirements/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 data management systems.
“All DisCos shall provide a publicly accessible online portal on their website where prospective MAPs can view the DisCo’s technical specifications and commercial terms for participation as a MAP within its network area.
“All DisCos are required to conduct a thorough test and confirmation of specifications for new meters proposed by a prospective MAP and concluded no later than 20 working days from the date the proposed MAP fulfills all the
requirements specified on the online portal to participate within its network area.
“Where a meter fails the confirmation test, the DisCo shall immediately notify 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, DIN Rail meters, and Current Limiters, but subject to full compliance with the NESI Metering Code and the requirements/specifications of DisCos,” the Commission said.
NERC therefore emphasised that the type of meter applicable to a customer under the MAP scheme shall be at the discretion of the DisCo having regard to the customer’s energy consumption profile.
It also revealed that the pricing of meters under the MAP scheme which has been deregulated is also subject to open transparent competition amongst MAP permit holders.
It said, “The Commission shall, in the interim, manage the process of submitting price offers valid for one month (or as may be determined by the Commission) for meters deployed under the MAP scheme to engender transparency and competition based on the following bid process:
“All MAP Permit holders wishing to participate in each competitive bidding cycle shall, no later than 5 days before the commencement of the process, provide verifiable evidence confirming the availability of a minimum stock of 2,000 units of meters,” it said.
NERC further stated that 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.
It said, “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 (1 am and 12 noon) 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 web link.
“The adoption of the online link for bid submissions shall remain in force until amended or discontinued by the Commission.
“The meter prices on offer by MAPs shall be valid for the succeeding month or until the opening of another price offer window by the Commission.
“The Commission shall forward the meter prices to the respective DisCos for publication.
“DisCos shall publish the bid prices from each MAP on its website on the day of receipt of such information from the Commission and within 48 hours at all its business and area offices for full view of its customers.
“Any MAP that fails to upload/submit a meter price bid shall be deemed to have withdrawn from the process and considered ineligible to participate in the provision of MAP meters for the period.
“The MAP Permit holder shall only be eligible to sell meters to end-use customers in a DisCo’s network when the company participates with a meter price offer when a price determination window is opened by the Commission.
“All DisCos shall provide links on their website for the filing of applications for MAP meters by end-use customers.
“DisCos shall specify to end-use customers the appropriate meter type including electronic meters, smart meters, loT Meters, Din Rail meters, and current limiters that are suitable for the end-customer’s premises.
“End-use customers shall have the sole right to choose their preferred MAP.
“All DisCos shall, at the end of each month, file with the Commission a return showing the meter supply and installation performance of each MAP for the month.
“Any MAP that fails, for more than 10% of customers, to install a meter at the premises of the end-use customer within the prescribed 10 working days after payment by the customer shall be disqualified from uploading meter prices in the next price determination window,” the NERC order revealed.
NERC also ordered that any MAP that fails to install a meter at the customer’s premises within 10 working days after the date of payment, shall, through the DisCo, pay the customer with preloaded energy credits of N500 and N1,000 for single-phase and three-phase meters respectively upon installation of the meter for each day of default.
The Commission has further emphasised that all DisCos are required to provide a dedicated bank account for payments made by customers for meters under the MAP scheme and ordered that the operational mandate of the account shall be as provided in the agreement signed with the MAP.
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