Power distribution companies in Nigeria have implemented a second price hike on various electricity meter models within just four months, sparking outrage among consumers.
The new price increases have been met with strong opposition, with many describing the move as “wicked” amid the ongoing economic hardship faced by citizens nationwide.
The latest hike comes as Nigerians continue to grapple with rising living costs, and power consumers are now voicing concerns over the added financial burden.
According to Discos, the price of a single-phase electricity meter has increased from around N117,000 to as high as N149,800.
This represents a rise of 28.03%, or N32,800, depending on the distribution company and meter vendor.
The new prices, announced on the official X handle of the Discos on Wednesday, were set to take effect on Tuesday, November 5, 2024. This price adjustment also reflects the deregulation of meter asset providers, as directed by the Nigerian Electricity Regulatory Commission.
The increase follows a previous hike in August 2024, deepening concerns among electricity consumers about the affordability and accessibility of meters.
An analysis of the documents revealed that meter prices vary across Discos, influenced by vendors and meter models (single-phase and three-phase).
Eko Disco pegged the price of its single-phase meter between N135,987.5 and N161,035, while a three-phase meter was pegged between N226,600 and N266,600.
Ibadan Disco said customers will pay between N130,998 and N142,548 for a single-phase meter and N226,556.25–NN232,008 for a three-phase-meter.
Customers under Abuja Disco will pay N123,130.53 – NN147,812.5 for single-phase meters and N206,345.65 – NN236,500 for three-phase meters.
Kano Electricity Distribution said its customers will pay N127,925–N129,999 for a single-phase meter and N223,793–NN235,425 for a three-phase meter.
Lastly, Kaduna Disco said N131,150 — N142,548.94 would be paid for single-phase meters and N220,375 — N232,008.04 for three-phase meters.
Recall In April 2024, the Nigerian Electricity Regulatory Commission introduced a significant policy shift by announcing the deregulation of meter prices under the Meter Asset Provider scheme for end-user customers.
This move allowed private meter vendors to set their own prices, resulting in the recent increase in the cost of electricity meters.
According to NERC’s order, meter prices under the MAP scheme will now be determined through competitive bidding rather than being centralised.
This shift is expected to foster greater competition among meter providers, ultimately improving cost efficiency and service delivery for end users.
The Chief Executive Officer of Fermadec Group, Fola Akinola had explained in April that the Discos temporarily shut down their meter application portals as both manufacturers and the Discos were in the process of regularizing meter prices to align with the current economic realities.
Akinola noted that the meter prices then were no longer sustainable, considering the exchange rate.
Akinola also stated that NERC needed to stop fixing the prices of prepaid meters, arguing that the instability of the exchange rate made it difficult to maintain consistent pricing.
“Before, the price used to be fixed, but now, each seller is going to give his or her price, depending on the type of meter,” he said.
However, The Executive Director of the Electricity Consumers Protection and Advocacy Centre, Princewill Okorie, rejected the new meter prices, saying there are no justifications for it.
He stressed that the Discos received N59 billion from the N200 billion allocated for the National Mass Metering Programme in 2020, yet only repaid N7 billion of the sum.
“What do you want me to say? They keep increasing the meter price, why are they wicked? N200bn was earmarked for the NMMP that was to be implemented in three phases. Only the pilot phase of N59bn was implemented. And what the 11 Discos could pay back was only N7bn. What did they use the rest of the money for?
“Since after that N59bn, what has happened to the rest of the money when you removed N59bn from N200bn? Are they not the same people who are paying for this meter that are paying for the shortfall as part of their electricity bills? The regulator increased the tariff, saying they wanted the Discos to get money to pay back the loan. Who are the people that got the meters?
“Let them stop taking Nigerians as fools. The meter acquisition fund, what did they use it for? So, it’s not justified at all. I don’t know why they want to keep inflicting punishment on Nigerian consumers. Let them account for the N200bn for the national mass metering programme,” he said.
Okorie argued that “in other countries, how much is a meter? What is the price of a one-phase meter or three-phase compared to what they are asking Nigerians to pay?”
When asked about the exchange rate being blamed for the meter price hike, he responded, “The N200bn, where is it? Is it the exchange rate that made the Discos not pay back the N59bn loan? Between 2020 and 2024, they were only able to pay N7bn. Why are consumers paying for meters when there is a meter acquisition fund?”
