Customers protest as the FG raises the cost of electricity meters by 40%.

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.

To ensure fair and reasonable pricing of meters to both Meter Asset Providers and end-use consumers, the NERC explained why it increased the price of the meters.

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 their pricing structure permitted a workable 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.

According to the statement, the commission used relevant data on substantial changes in macroeconomic indicators from the National Bureau of Statistics and the Central Bank of Nigeria as benchmarks for the review of meter prices.

While this was going on, 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 regulated and certified by the NERC.

It said the approved meter prices were exclusive of Value Added Tax, but noted that they were inclusive of the revised Nigerian Electricity Management Services Agency sealing cost.

It stated that the sealing cost for a single-phase meter was N842.80 per unit, while that of a three-phase meter was N1,100.80 per unit.

“All MAPs shall adjust their prices to reflect the approved rates. All MAPs shall supply meters previously paid for by end-use customers prior to the commencement of this order at the prevailing rate when payment was made by the customers without additional increase in cost.

“All Discos and MAPs are to develop/implement customer enlightenment campaigns on the price review along with a schedule on the implementation of their meter rollout plans. All MAPs shall continue to file monthly sales and meter installation returns with the commission,” the industry regulator stated.