On Wednesday, the Federal Government revealed a price hike for single-phase and three-phase pre-paid electricity meters, with the new rates taking effect starting from September 6, 2023.
This announcement was made through an order issued by the Nigerian Electricity Regulatory Commission (NERC), identified as NERC/2023/020.
The order was jointly signed by the Commission’s Chairman, Sanusi Garba, and its Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.
In this order, the government specified that a single-phase meter’s price would increase to N81,975.16k, up from its previous price of N58,661.69k.
Similarly, the price of a three-phase meter was raised to N143,836.10k from N109,684.36k.
This decision faced opposition from power consumers who questioned why the Federal Government continued to raise costs in Nigeria’s energy sector.
However, NERC defended the price hike, emphasizing its goal to establish fair and reasonable meter pricing for both Meter Asset Providers (MAPs) and end-use customers.
The increase was intended to support MAPs in recovering reasonable costs related to meter procurement and maintenance while ensuring their pricing structure allowed for a sustainable return on investment.
The NERC further explained that this move aimed to assess the affordability of meter services for consumers to prevent excessive pricing that could burden end-users.
It sought to ensure that MAPs could provide meters to end-use customers given the prevailing economic conditions.
Closing the metering gap for end-use customers was deemed essential for the financial stability of the Nigeria Electricity Supply Industry (NESI), as end-use meters offered revenue assurance for both utility companies and their customers.
The Meter Asset Provider scheme was highlighted as a vital component of the regulations for meter provision to end-use customers in NESI.
The NERC acknowledged that significant changes in macroeconomic indicators, such as inflation and foreign exchange rates, had necessitated a review of the regulated rates for MAP meters.
The commission used data from the Central Bank of Nigeria and the National Bureau of Statistics as benchmarks for this price review.
Additionally, the NERC specified that the costs of single-phase and three-phase meters for MAPs, including installation and warranties, would remain at the regulated rates approved by the commission.
These approved meter prices excluded Value Added Tax but included the revised Nigerian Electricity Management Services Agency sealing cost.
The sealing cost for a single-phase meter was set at N842.80 per unit, while that of a three-phase meter was N1,100.80 per unit.
The commission instructed all MAPs to adjust their prices to align with the approved rates and provide meters to end-use customers who had previously paid at the earlier rates without additional cost.
Furthermore, it called on all Distribution Companies (Discos) and MAPs to conduct customer awareness campaigns regarding the price review and share plans for meter rollout.
They were also mandated to submit monthly sales and meter installation reports to the commission.
In response to the price hike, power consumers expressed their opposition, urging the government to consider the challenges faced by Nigerians and reconsider the increase.
The National Secretary of the Nigeria Electricity Consumer Advocacy Network, Uket Obonga, highlighted concerns about the impact on ordinary Nigerians, particularly considering the recent increases in fuel prices, diesel prices, and now meter prices in the energy sector.
