On Wednesday, the Federal Government announced an increase in the prices of single-phase and three-phase prepaid electricity meters, effective from September 6, 2023. This announcement was made in an order issued by the Nigerian Electricity Regulatory Commission (NERC) and was jointly signed by the Commission's Chairman, Sanusi Garba, and its Commissioner for Legal, Licensing, and Compliance, Dafe Akpeneye.
In the order, it was stated that a single-phase meter's price would now be N81,975.16k, up from the previous price of N58,661.69k, while a three-phase meter's price would increase to N143,836.10k from N109,684.36k. This decision faced opposition from power consumers who questioned the government's continuous price hikes in Nigeria's energy sector.
However, NERC justified the meter price increase, emphasizing the need for fair and reasonable pricing to benefit both Meter Asset Providers (MAPs) and end-use customers. They aimed to enable MAPs to recover their costs associated with meter procurement and maintenance while ensuring a viable return on investment. The commission also stressed the importance of closing the metering gap for end-use customers to ensure the financial sustainability of the Nigerian Electricity Supply Industry.
The commission considered factors like inflation and changes in foreign exchange rates as reasons for the meter price review. It clarified that the approved meter prices did not include Value Added Tax but included the revised Nigerian Electricity Management Services Agency sealing cost.
Consumers expressed their dissatisfaction with the meter price hike, urging the government to reconsider the increase due to the current economic challenges faced by Nigerians, including rising fuel and diesel prices, among others. They suggested that pressure from Meter Asset Providers played a role in the decision to raise meter prices.
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