The price of single-phase and three-phase pre-paid power meters will increase, the federal government stated on Wednesday. The increase will go effective on September 6, 2023.
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, Licensing, 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, power users fought back against this, questioning why the Federal Government kept raising the price of key commodities in Nigeria’s energy industry.
But explaining why it hiked the costs of the meters, the NERC said it was to ensure a fair and reasonable pricing of meters to both Meter Asset Providers and end-use customers.
It said the hike would ensure MAP’s ability to recover reasonable costs associated with meter procurement and maintenance, while ensuring that their pricing structure allowed for a viable return on investment.
“Evaluate the affordability of meter services for consumers, aiming to prevent excessive pricing that could burden end-users. Ensure that MAPs are able to provide meters to end-use customers in the prevailing economic realities,” the commission stated.
It said the closure of the metering gap for end-use customers was fundamental to the financial sustainability of the Nigeria Electricity Supply Industry as end-use meters provide revenue assurance to both the utility and their end-use customers.
“The Meter Asset Provider scheme is one of the four frameworks in the regulations for the provision of meters to end-use customers in NESI.
“Section 8(1)(c) of the regulations provides that the costs of single-phase and three-phase meters issued by MAPs, inclusive of all other associated costs of installation and warranties shall be at the regulated rates 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 stated.
