In an official announcement made on Wednesday, the Federal Government has decided to raise the prices of both single-phase and three-phase pre-paid electricity meters, effective September 6, 2023. The decision, documented in order NERC/2023/020 by the Nigerian Electricity Regulatory Commission (NERC), bears the signatures of Sanusi Garba, Chairman of the commission, and Dafe Akpeneye, Commissioner for Legal, Licensing, and Compliance.
Under the 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 of a three-phase meter has surged to N143,836.10k from N109,684.36k. This development has triggered a strong response from power consumers, who are questioning the continuous rise in the cost of various commodities within Nigeria’s energy sector.
NERC, however, offered an explanation for the price hike, emphasizing the need for fair and reasonable pricing that benefits both Meter Asset Providers (MAPs) and end-use customers. The commission stated that this adjustment was necessary to enable MAPs to recover their costs related to meter procurement and maintenance while maintaining a viable return on investment.
Additionally, NERC aims to evaluate the affordability of meter services for consumers, preventing excessive pricing that could burden end-users and ensuring that MAPs can provide meters amid the prevailing economic conditions. The commission highlighted that closing the metering gap for end-use customers is crucial for the financial sustainability of Nigeria’s Electricity Supply Industry, as these meters secure revenue for both utilities and customers.
The Meter Asset Provider scheme, one of four frameworks for meter provision in Nigeria, follows regulations that require regulated rates for single-phase and three-phase meters. The NERC stated that significant changes in macroeconomic indicators, such as inflation and foreign exchange rates, prompted this rate review, with data from the Central Bank of Nigeria and the National Bureau of Statistics serving as benchmarks.
The NERC clarified that the approved meter prices do not include Value Added Tax but incorporate the revised Nigerian Electricity Management Services Agency sealing cost. This sealing cost is N842.80 per unit for a single-phase meter and N1,100.80 per unit for a three-phase meter.
The commission has called upon all MAPs to adjust their prices accordingly and has mandated customer enlightenment campaigns and meter rollout plans in cooperation with distribution companies (Discos). MAPs are also required to submit monthly sales and meter installation reports to the commission.
