ABUJA, Nigeria – The Nigerian Electricity Regulatory Commission, NERC, has announced an increase in the prices of pre-paid electricity meters across the country.
This was disclosed in an official ‘order’ signed on Tuesday, September 5, 2023, by the commission’s Chairman, Mr Sanusi Garba, and the Commissioner for Legal, Licensing & Compliance, Mr Dafe Akpeneye.
The document was made available to the journalists on Wednesday, September 6, 2023, in Abuja.
According to the NERC, the price of a single-phase pre-paid meter will now be N81,975.16, up from the previous N58,661.69.
Similarly, the cost of a three-phase pre-paid meter has been adjusted to N143,836.10 from N109,684.36.
The commission attributed the price changes to fluctuations in macroeconomic indicators like inflation and foreign exchange rates.
The announcement stated, “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 new prices are exclusive of the 7.5% Value Added Tax, VAT, and aim to establish a fair pricing mechanism for both Meter Assets Providers, MAPs, and end-use customers.
The objectives of the new pricing regime are multi-fold:
- Ensure that MAPs can recover reasonable costs associated with meter procurement and maintenance.
- Enable a pricing structure that allows MAPs to achieve a viable return on investment.
- Evaluate the affordability of meter services for consumers to prevent excessive pricing.
- Ensure that MAPs can supply meters to end-users in the current economic climate.
The move is likely to stir discussions around the affordability of essential utilities in Nigeria, where many households are already grappling with rising living costs.
Nonetheless, the NERC argues that the new prices reflect the prevailing economic realities and are designed to balance reasonable pricing for consumers and the economic viability for providers.
Critics argue that the timing of the increase is unfortunate, especially with the ongoing labour union strikes affecting electricity supply across several cities.
The NERC’s announcement could add fuel to the already simmering public discontent over electricity access and affordability.
