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Pursuant to the provisions of section 19(d) of the Meter Asset Provider Regulations (MAP) allowing for the indexing of the unit cost of meters to changes in macroeconomic parameters, the Nigerian Electricity Regulatory Commission (NERC) has approved an upward review of the unit cost of MAP meters.

In arriving at the approved unit costs, the Commission says it has considered the recent changes in foreign exchange approved by the Central Bank of Nigeria and the applicable rates available to importers of meter components and/or fully assembled meters through the “Investors & Exporters” forex window.

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The effective date of the new rates is 1 June 2020.

Meter TypeCurrent Cost (Naira)Revised Cost (Naira)
Single-Phase Meter36,991.5044,896.17
Three-Phase Meter67,055.8582,855.19
Note: All costs are exclusive of Value Added Tax (VAT).

Closing the metering gap

NERC has also approved the commencement of the second round of MAP procurements by the electricity distribution companies to meet up with their roll-out plan for closing the metering gap.

The development dates back to 2018 when the Commission issued a MAP designed to fast track closure of the end-user metering gap with a goal of eliminating the practice of “estimated billing” unless in the exceptional circumstances envisaged under the said regulation.

The regulations came into effect on April 3 2018, and all 11 electricity distribution companies are required to commence the procurement process of engaging Meter Asset Providers to serve their service areas in accordance with an approved roll-out plan.

Section 8(3) of the Meter Asset Providers Regulations 2018 provides that prospective MAPs “shall apply to the Commission for a “No Objection” in the first instance to signify their intention to participate in the procurement process for MAPs under these Regulations. All applications shall be submitted in accordance with the requirements of Schedule 1 of these Regulations”.

In this regard, the Commission notified all interested companies that intended to participate in the Distribution Licensees’ forthcoming tender to submit their application for ‘No Objection’.