The Federal Government has announced an increase in the prices of single-phase and three-phase pre-paid electricity meters, with the change set to take effect from September 6, 2023. This decision was communicated through an order released by the Nigerian Electricity Regulatory Commission (NERC), bearing the number 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.
Under this new pricing structure, a single-phase meter will now cost N81,975.16k, up from its previous price of N58,661.69k, while the price for a three-phase meter has been raised to N143,836.10k from N109,684.36k.
This price adjustment has faced opposition from power consumers who are concerned about the increasing costs of essential commodities in the energy sector in Nigeria.
However, the NERC explained that the reason for the meter price hike is to establish a fair and reasonable pricing structure that benefits both Meter Asset Providers (MAPs) and end-use customers. The Commission clarified that this price adjustment is intended to enable MAPs to recover their costs associated with meter procurement and maintenance while ensuring a viable return on their investment.
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The NERC’s objectives for the price change include:
- Evaluating the affordability of meter services for consumers to prevent excessive pricing.
- Ensuring that MAPs can provide meters to end-use customers in the current economic conditions.
The Commission emphasized that closing the metering gap for end-use customers is essential for the financial sustainability of the Nigeria Electricity Supply Industry (NESI) since end-use meters provide revenue assurance for both utility companies and their customers.
The NERC mentioned that the Meter Asset Provider scheme is one of the four frameworks for meter provision to end-use customers in NESI, and the adjustment in meter prices is influenced by significant changes in macroeconomic indicators, such as inflation and foreign exchange rates.
The Commission also noted that the approved meter prices do not include Value Added Tax (VAT) but do include the revised Nigerian Electricity Management Services Agency sealing cost.
In response to this, power consumers expressed their dissatisfaction with the meter price hike and called on the government to reconsider its decision, taking into account the challenges faced by Nigerians. They noted that the price increase comes at a time when Nigerians are already grappling with rising costs in various energy sector products, including fuel and diesel.
