The Federal Government has officially announced an upward adjustment in the prices of both single-phase and three-phase pre-paid electricity meters, effective September 6, 2023. This development was communicated through an official order issued by the Nigerian Electricity Regulatory Commission (NERC), numbered NERC/2023/020. The order was jointly signed by the Chairman of the commission, Sanusi Garba, and the Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.
Under the revised pricing structure, a single-phase meter will now cost N81,975.16k, compared to its previous price of N58,661.69k. Similarly, the price of a three-phase meter has been raised to N143,836.10k from its previous rate of N109,684.36k.
These price hikes have sparked criticism from power consumers who are questioning the government's decision to increase costs in Nigeria's energy sector. Many are concerned about the economic burden this poses to the citizens.
However, NERC has offered its rationale for the price adjustments, stating that it aims to ensure fair and reasonable pricing for meters, benefiting both Meter Asset Providers (MAPs) and end-use customers. The increase is intended to enable MAPs to recover their reasonable expenses related to meter procurement and maintenance while ensuring a viable return on investment.
NERC emphasized its commitment to assessing the affordability of meter services for consumers to prevent excessive pricing that could strain end-users. Closing the metering gap for end-use customers is seen as critical to the financial sustainability of the Nigeria Electricity Supply Industry, as it ensures revenue assurance for both utility companies and their customers.
The Meter Asset Provider scheme is an integral part of the regulations for meter provision to end-use customers in Nigeria's energy sector. The commission acknowledged that significant changes in macroeconomic indicators, such as inflation and foreign exchange rates, necessitated a review of the regulated rates for MAP meters. This review considered data from the Central Bank of Nigeria and the National Bureau of Statistics as benchmarks.
NERC clarified that the approved meter prices do not include Value Added Tax but do incorporate the revised Nigerian Electricity Management Services Agency sealing cost. For instance, the sealing cost for a single-phase meter is N842.80 per unit, while a three-phase meter's sealing cost is N1,100.80 per unit.
The industry regulator directed all MAPs to adjust their prices in accordance with the approved rates and to supply meters to customers who had previously made payments at the prevailing rate before this order, without any additional increase in cost. Additionally, all electricity distribution companies (Discos) and MAPs are instructed to conduct customer enlightenment campaigns regarding the price adjustment and provide schedules for meter rollout plans. They are also required to submit monthly sales and meter installation reports to the commission.
In response to the price hikes, power consumers have expressed their disapproval, urging the government to consider the financial challenges faced by Nigerians and reconsider the increase. The National Secretary of the Nigeria Electricity Consumer Advocacy Network, Uket Obonga, attributed the price hike to pressure from Meter Asset Providers and noted the cumulative burden of rising costs in the energy sector, including fuel and diesel prices.
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