FG Hikes Electricity Meters Price By 40%

The Federal Government, on Wednesday, announced an increase in the prices of single-phase and three-phase pre-paid electricity meters and declared that the hike takes effect from September 6, 2023.

In the order, released by the Nigerian Electricity Regulatory Commission the government stated that a single-phase meter would now cost N81,975.16k from the previous price of N58,661.69k, while the price of a three-phase meter was raised from N109,684.36k to N143,836.10k

In the past couple of months, the cost of various commodities in Nigeria’s energy sector has continued to rise steadily

In explaining the reason for the hike in costs of the meters, the NERC said it was to ensure fair and reasonable pricing of meters to both Meter Asset Providers and end-use customers.

It said the hike would ensure MAP’s ability to recover reasonable costs associated with meter procurement and maintenance, while ensuring that their pricing structure allowed for a viable 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.