NERC raises prepaid electricity meter costs by 40%

The Daily Trust says that the Nigerian Electricity Regulatory Commission (NERC) has given its clearance for a price increase on prepaid meters nationwide.

The statement was made in a circular that was made public and was dated September 5, 2023. Sanusi Garba, the chairman, and Dafe Akpeneye, the commissioner for legal, licensing, and compliance, both signed it. The following are the updated prepaid meter prices that the commission has announced:

The cost of a single-phase prepaid meter has increased to N81,975.16k from N58,661.69k, and the price of a three-phase prepaid meter has increased to N143,836.10k from N109,684.36k.

The purpose of the price adjustment, as stated in the circular, was to establish a just and reasonable meter pricing system that would be fair to both meter asset providers (MAPs) and end-user consumers.

The price modification is being made, among other things, to “guarantee MAP’s ability to recoup acceptable costs related to meter procurement and maintenance while ensuring that its pricing structure allows for a healthy return on investment. In order to prevent excessive pricing that can burden end-users and to make sure that MAPs are able to deliver meters to end-use customers in the current economic climate, it is necessary to assess the affordability of meter services for consumers.

The upshot is that customers of electricity will have to pay an additional N23,313.64 for a single-phase meter—a 40% increase—and an additional N34,151.76 for a three-phase meter—a 31% increase.

The announcement follows a directive from the Nigerian Electricity Regulatory Commission (NERC), which was issued by Abdulkadir Shettima, General Manager for Finance and Management, that consumers with defective meters are entitled to quick repairs within two days and at no additional cost.

This announcement was made at a recent NERC workshop on metering issues for consumer advocacy groups and civil society organizations held in Kano state.

Details on the price increase for prepaid meters

The approval of the price rise for prepaid meters also occurred at the same time as eleven electricity distribution companies (DisCos) applied for a review of their individual electricity tariffs a few months ago. The information was revealed in a notification that the Nigerian Electricity Regulatory Commission (NERC) released on Friday.

The Federal Government responded by stating that the necessity to take into account changes in macroeconomic indices and other factors that affect these enterprises’ operations, quality of service, and sustainability is what led to the request for rate review.

The NERC then confirmed that DisCos’ request for a rate review complies with Sections 116 (1) and 2(a&b) of the Electricity Act 2023 as well as other pertinent regulations. Making sure that the power rates are in line with the present macroeconomic dynamics is the main goal of this assessment.

However, the DisCos decided to delay the proposed tariff hike on July 1 in response to public uproar. The DisCos have reapplied for a rate review, according to a recent notice from the NERC, suggesting that the rise may still take place.

As a result, Nigerians may need to prepare for simultaneous increases in the price of prepaid meters and power. Given that the nation is already going through a difficult moment brought on by multiple macroeconomic issues, it is still unclear when and how this will take off or whether the FG will intervene.

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Samson Ayodeji

I am literally obsessed with technology. I love writing about the latest news in technology in different markets, segments and sectors across the world.

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