The Federal Government has announced an adjustment in the pricing of single-phase and three-phase prepaid electricity meters, with the new rates coming into effect starting September 6, 2023.
This development was disclosed in an official order issued by the Nigerian Electricity Regulatory Commission (NERC) under the reference number NERC/2023/020.
The order was jointly signed by the Chairman of the commission, Mr. Sanusi Garba, and its Commissioner for Legal, Licensing, and Compliance, Mr. Dafe Akpeneye.
Under the updated pricing, a single-phase meter will now be priced at N81,975.16k, up from its previous rate of N58,661.69k. Similarly, the cost of a three-phase meter has been increased to N143,836.10k from N109,684.36k.
These price adjustments have stirred controversy among power consumers, who question the Federal Government’s repeated hikes in various energy sector commodities in Nigeria.
In response to the concerns, NERC clarified that the meter price revision was implemented to ensure fair and reasonable pricing for both Meter Asset Providers (MAPs) and end-use customers.
The aim is to enable MAPs to recover reasonable costs related to meter procurement and maintenance while maintaining a pricing structure that ensures a sustainable return on investment.
NERC’s statement emphasized the importance of evaluating the affordability of meter services for consumers to prevent excessive pricing that could burden end-users. The commission also stressed the necessity of enabling MAPs to provide meters to end-use customers in the current economic landscape.
The closure of the metering gap for end-use customers was highlighted as a fundamental aspect of ensuring the financial sustainability of the Nigeria Electricity Supply Industry. End-use meters are crucial for revenue assurance for both utility companies and their end-use customers.
The Meter Asset Provider scheme is part of the four frameworks outlined in the regulations for supplying meters to end-use customers in the Nigeria Electricity Supply Industry. According to Section 8(1)(c) of the regulations, the costs of single-phase and three-phase meters issued by MAPs, including installation and warranties, should adhere to the regulated rates approved by the commission.
NERC emphasized that significant changes in macroeconomic indicators, such as inflation and foreign exchange rates, have necessitated a review of the regulated rates for MAP meters. The commission took into account relevant data from the Central Bank of Nigeria and the National Bureau of Statistics as benchmarks for the meter price review.
