Lagos — The electricity market regulator, NERC, has issued further orders to distribution companies on the procurement of meters by electricity consumers.
In a document issued on August 30th and signed by NERC’s Chairman, James Momoh and its Legal, Licensing & Compliance Commissioner, Dafe Akpeneye, said the approval of N36, 991 and N67, 055 (excluding VAT) as prices for single-phase and 3-phase meters respectively covers the cost of meter procurement, financing, installation, maintenance and all cost associated with the meter.
According to the document titled ‘Order on Implementation of Meter Asset Provider scheme in the Nigerian Electricity Supply Industry’ obtained by SweetcrudeReports, customers who elect to pay upfront for their meters will not pay more than the approved prices state above, and will be metered within the next ten days of making full payment, with no further charge to be imposed on such customer throughout the useful life of the meter.
However, customers who want to get the meter through installment payment will be liable to pay a monthly meter service charge on their bills, separate from the energy charge in accordance with section 10 (5) of the Regulation, for the duration of their chosen installment payment plans.
NERC said Meter Assets Providers, MAPs, are free to apply cost of financing meters to the monthly service charge of customers who pay by installment.
“MAPs shall ensure that they obtain competitive rates for the cost of financing which shall be passed on to customers and the maximum financing costs which shall be charged to customers shall not exceed rate of 21% per annum on the approved prices stated above”.
The approval rates of financing costs will commence with effect from August 1, 2019, and may be reviewed by the Commission after three years.
Customers are to choose their payment plan which NERC said will not exceed 120 months.