The Nigerian Electricity Regulatory Commission (NERC) has directed meter asset providers (MAPs) to ensure that customers who already paid for meters before the latest hike of the prices should be supplied their meter without additional costs.
The Commission stated this via its LinkedIn account on Wednesday, pointing out that “the order on the review of unit cost of end-use meters under the Meter Asset Provider (MAP) and National Mass Metering Programme (NMMP) Regulations was effective since 6 September 2023. MAPs are to supply meters to all customers who had paid previously for meters before the effective date at the prevailing rate without additional increase in cost.”
The industry regulatory commission attributed the latest upward review of the meters’ prices primarily to the depreciating value of the Naira in the foreign exchange (FX) markets since most components that make up the meter are imported, and the foreign exchange rate affects their cost.
The NERC further clarified: “NERC approved the review of meter prices to reflect the forex adjustment reality to avoid scarcity of meters in our commitment towards putting an end to estimated billing methodology.”
The review of the meters’ prices by the commission through its September 6, 2023 directive in line with the authority vested by Section 226 of the Electricity Act 2023 and Section 8(1) of the MAP & NMMP 2021 indicated a revised cost structure for meter purchases under the Meter Asset Provider (MAP) programme, excluding Value Added Tax (VAT).
The new pricing template showed that single-phase meters, which previously cost N58,661.69, will now be sold to consumers at N81,975.16 while the three-phase meters, formerly priced at N109,684.36, will now be available for N143,836.10.
The NERC directive is aimed at establishing equitable and just pricing for meters, benefiting both Meter Asset Providers (MAPs) and end-users and to safeguard MAPs’ capacity to recuperate reasonable expenses linked to meter procurement and upkeep, all while ensuring that their pricing framework facilitates a sustainable return on investment (ROI).
The policy measure, which involves a thorough assessment of the affordability of meter services for consumers, with the goal of averting any unwarranted pricing that might place a heavy burden on end-users, has as its main objective of ensuring that MAPs remain operationally capable of supplying meters to end-use customers, despite the prevailing economic conditions in the country.
