“Consumers express discontent as the federal government raises the price of electricity meters by 40%.”

  • Post category:Business

“On Wednesday, the Federal Government announced a price increase for both single-phase and three-phase pre-paid electricity meters, effective from September 6, 2023. This decision was outlined in an order issued by the Nigerian Electricity Regulatory Commission (NERC) under the reference number NERC/2023/020. The order was jointly signed by NERC’s Chairman, Sanusi Garba, and its Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.

The new pricing stipulates that a single-phase meter will now cost N81,975.16k, up from the previous price of N58,661.69k, while the price of a three-phase meter has been increased to N143,836.10k from N109,684.36k.

However, this price hike has been met with resistance from power consumers who question the Federal Government’s continuous increases in the cost of various energy-related commodities in Nigeria.

The NERC defended the price adjustments, stating that they were intended to ensure fair and reasonable pricing for meters, benefiting both Meter Asset Providers (MAPs) and end-use customers. The commission asserted that these price changes would enable MAPs to recover reasonable expenses associated with meter procurement and maintenance, all while allowing for a viable return on investment.

The NERC further explained that the adjustment aimed to evaluate the affordability of meter services for consumers and prevent excessive pricing that could burden end-users, considering the current economic conditions. The commission stressed the importance of closing the metering gap for end-use customers to ensure the financial sustainability of the Nigerian Electricity Supply Industry (NESI) and provide revenue assurance for both utilities and end-users.

The Meter Asset Provider scheme is an essential component of NESI’s effort to provide meters to end-use customers. The NERC noted that significant changes in macroeconomic indicators, including inflation and foreign exchange rates, prompted the need to review the regulated rates for MAP meters.

The NERC also indicated that the approved meter prices did not include Value Added Tax (VAT) but covered the revised Nigerian Electricity Management Services Agency sealing cost, which is N842.80 per unit for a single-phase meter and N1,100.80 per unit for a three-phase meter.

The commission directed all MAPs to adjust their prices to align with the approved rates and to supply meters to end-use customers at the prevailing rate previously paid by the customers, without additional cost. Additionally, it called for customer enlightenment campaigns on the price review and the implementation of meter rollout plans by Distribution Companies (Discos) and MAPs.”

Consumers react:
“Power consumers strongly objected to the meter price increase, urging the government to reconsider in light of the challenges faced by Nigerians and revert to the previous pricing.

The National Secretary of the Nigeria Electricity Consumer Advocacy Network, Uket Obonga, noted that the government had discussed this matter since the unification of foreign exchange rates but had been cautioned against it due to the current difficulties faced by Nigerians.

Obonga pointed out that the price hike resulted from pressure exerted by Meter Asset Providers (MAPs) on the government, with some MAPs threatening to withdraw from meter provision if the equipment’s cost remained unchanged.

He highlighted that Nigerian consumers were already grappling with steep increases in various energy sector products, such as rising fuel and diesel prices, as well as the meter price hike.”

This Post Has 33 Comments

  1. naMHAEHaPPy.COM

    Greetings from Florida! I’m bored to death at work so I decided to browse your website on my iphone during lunch break.

    I enjoy the information you present here and can’t wait to take a look when I get home.
    I’m surprised at how fast your blog loaded on my phone ..
    I’m not even using WIFI, just 3G .. Anyhow, awesome site! http://namhaehappy.com/bbs/board.php?bo_table=free&wr_id=406232

  2. kontol

    I’m curious to find out what blog system you have been using?
    I’m having some small security problems with my latest blog and I’d like to
    find something more safeguarded. Do you have any
    suggestions?

Leave a Reply