The Federal Government announced a price rise for single-phase and three-phase pre-paid electricity meters on Wednesday, with the increase taking effect on September 6, 2023.
The Punch reported that the Nigerian Electricity Regulatory Commission made this announcement in an order that was issued with the NERC/2023/020 number and was jointly signed by the commission’s Chairman, Sanusi Garba, and its Commissioner for Legal, Licencing, and Compliance, Dafe Akpeneye.
According to the government’s order, the cost of a single-phase meter has increased from N58,661.69 to N81,975.16 and the cost of a three-phase meter has increased from N109,684.36 to N143,836.10.
However, electricity consumers fought back against this, questioning why the Federal Government kept raising the price of key commodities in Nigeria’s energy industry.
However, the NERC provided an explanation for why it increased the price of the metres, claiming that it did so to guarantee a fair and acceptable pricing of meters to both Metre Asset Providers and end-user customers.
It claimed that the price increase would guarantee MAP’s capacity to recoup acceptable expenses related to the acquisition and upkeep of meters while ensuring that its pricing structure permitted a workable return on investment.
“One of the four frameworks in the NESI regulations for providing meters to end-use customers is the Metre Asset Provider program.
“According to Section 8(1)(c) of the regulations, single-phase and three-phase meters provided by MAPs, as well as any additional installation and warranty charges, must be purchased at regulated rates that have been approved by the commission.
“The commission notes that significant changes in macroeconomic indicators, such as inflation and changes in the foreign exchange rates, have necessitated a review of the regulated rates for MAP meters,” the NERC said.
The commission said that the prices for MAP single-phase and three-phase meters, as well as any other installation and warranty charges, would continue to be controlled and certified by the NERC.
The new Nigerian Electricity Management Services Agency sealing cost was mentioned as being included in the authorized meter costs, which were stated to be exclusive of Value Added Tax.
The cost of sealing a single-phase meter was listed as N842.80 per unit, while the cost of sealing a three-phase meter was listed as N1,100.80 per unit.
“All MAPs must change their prices to reflect the approved rates. Before the start of this order, all MAPs must supply meters that end-use customers had already paid for at the rate in effect at the time of the customers’ payment, without any extra cost increases.
“All Discos and MAPs are required to establish and implement customer education campaigns on the price review, as well as a timeline for carrying out their meter rollout plans. The commission requires all MAPs to continue submitting monthly sales and meter installation returns, according to the sector regulator.
Electricity consumers have however protested the increase in meter costs, urging the government to take into account the needs of Nigerians and rescind the increase.
