NERC increases prices of prepaid electricity meters by 40%

The Nigerian Electricity Regulatory Commission (NERC) has granted approval for an upward adjustment in the prices of prepaid meters within the country, the Daily Trust reports.

The announcement was contained in a circular released and dated September 5, 2023. It was signed by the Chairman, Sanusi Garba, and the Commissioner of Legal, Licencing, and Compliance, Dafe Akpeneye. The commission has announced revised prices for prepaid metres as follows:

A single-phase prepaid meter will now be priced at N81,975.16k, up from the previous N58,661.69k, while the cost of a three-phase prepaid metre has been raised to N143,836.10k from the previous N109,684.36k. 

As explained in the circular, the motivation behind the price adjustment was to create an equitable and sensible metre pricing system that would be fair to both the Metre Asset Providers (MAPs) and end-user customers.

Some of the reasons highlighted by the price adjustment are; “To ensure MAP’s ability to recover reasonable costs associated with meter procurement and maintenance while ensuring that their pricing structure allows for a viable return on investment. To evaluate the affordability of meter services for consumers, aiming to prevent excessive pricing that could burden end-users and to ensure that MAPs are able to provide meters to end-use customers in the prevailing economic realities.”

The implication is that electricity consumers will have to pay an additional N23,313.64 for a Single-phase meter, which is a 40% increment and N34,151.76 to get a Three-phase meter, representing a 31% increase.

The announcement is also coming at the back of a directive by the Nigerian Electricity Regulatory Commission (NERC) through its General Manager for Finance and Management, Abdulkadir Shettima that customers with faulty meters are eligible for prompt repairs within 2 days and at no extra cost.

This announcement was made during a recent NERC Workshop in Kano state, focused on Metering Issues for Civil Society Organizations and Consumer Advocacy Groups.

Read also: How to update your prepaid meter to prevent shutdown

More on the prepaid meters price hike

The approval for the increase in the prices of prepaid metres is also coming at a time when eleven electricity distribution companies (DisCos) some months ago applied for a review of their respective electricity tariffs. The disclosure came through a notice published by the Nigeria Electricity Regulatory Commission (NERC) on Friday.

In response, the Federal Government explained that the request for rate review is driven by the need to incorporate changes in macroeconomic parameters and other factors that impact the quality of service, operations, and sustainability of these companies.

The NERC then clarified that the DisCos’ request for rate review is in accordance with Sections 116 (1) and 2(a&b) of the Electricity Act 2023, along with other relevant rules. The primary objective behind this review is to ensure that the electricity rates align with the current macroeconomic dynamics.

But after public outcry, the DisCos postponed the planned tariff increase on July 1. However, a recent notice from the NERC reveals that the DisCos have applied for a rate review again, showing a possibility that the increase may still occur.

Consequently, Nigerians might have to brace up for both an increase in prepaid metres and an increase in electricity tariff consecutively. It is yet to be seen when and how this will take off or if the FG will intervene, given that the country is already witnessing a hard time sponsored by various macroeconomic factors.

Read also: NERC mandates DisCos to fix faulty pre-paid meters within 2 days