The Federal Government has announced a new increase in the prices of single-phase and three-phase pre-paid electricity meters by 40%, effective from September 6, 2023.
According to an order released by the Nigerian Electricity Regulatory Commission (NERC) with number NERC/2023/0201, the price of a single-phase meter will rise from N58,661.69k to N81,975.16k, while the price of a three-phase meter will go up from N109,684.36k to N143,836.10k.
The order was jointly signed by the NERC Chairman, Sanusi Garba, and its Commissioner, Legal, Licencing and Compliance, Dafe Akpeneye.
The NERC said the price hike was necessary to ensure a fair and reasonable pricing of meters for both Meter Asset Providers (MAPs) and end-use customers. It also said it would help MAPs recover their costs and make a viable return on investment.
The NERC explained that the metering gap for end-use customers was a major challenge for the financial sustainability of the Nigeria Electricity Supply Industry (NESI), as meters provide revenue assurance for both the utility and the customers.
It said the Meter Asset Provider scheme was one of the four frameworks in the regulations for providing meters to end-use customers in NESI. It added that the costs of single-phase and three-phase meters issued by MAPs, inclusive of installation and warranties, shall be at the regulated rates approved by the commission.
The NERC noted that significant changes in macroeconomic indicators, such as inflation and foreign exchange rates, had necessitated a review of the regulated rates for MAP meters. It said it had considered relevant data from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) as benchmarks for the meter price review.
The NERC stated that the approved meter prices were exclusive of Value Added Tax (VAT), but inclusive of the revised Nigerian Electricity Management Services Agency (NEMSA) sealing cost. It said the sealing cost for a single-phase meter was N842.80 per unit, while that of a three-phase meter was N1,100.80 per unit.
The NERC directed all MAPs to adjust their prices to reflect the approved rates. It also ordered them to supply meters previously paid for by end-use customers prior to the commencement of this order at the prevailing rate when payment was made by the customers without additional increase in cost.
It further instructed all Discos and MAPs to develop and implement customer enlightenment campaigns on the price review along with a schedule on their meter rollout plans. It also mandated all MAPs to continue to file monthly sales and meter installation returns with the commission.
However, not everyone is happy with this development. Many power consumers have expressed their displeasure and frustration over the hike in meter prices. They have accused the Federal Government of being insensitive and exploitative, especially in these hard times.
They have also questioned why the government had continued to increase the cost of various commodities in Nigeria’s energy sector, such as fuel and electricity tariffs. They have called on the government to reverse the increase and make meters more affordable and accessible for Nigerians.
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