Nigerian Consumers Protest as Discos Hike Meter Prices by 28%

Electricity distribution companies across Nigeria have raised the prices of various electricity meter models, marking the second increase in just four months. This latest hike has left many power consumers frustrated, describing the move as “unfair” given the current economic challenges nationwide.

According to the Discos, the price of a single-phase meter has surged from around N117,000 to as much as N149,800, representing a 28.03% rise, or an additional N32,800, depending on the specific distribution company and meter vendor.

These new rates, posted on the Discos’ official X handles on Wednesday, took effect on Tuesday, November 5, 2024. The increase aligns with the Nigerian Electricity Regulatory Commission’s (NERC) recent directive, which deregulated meter asset providers (MAPs), opening the door for competitive pricing.

This price hike follows a previous increase in August 2024, compounding concerns about the affordability of electricity meters for Nigerian households. Documentation shows that prices vary by distribution company and meter type (single-phase vs. three-phase), influenced by vendor pricing and market competition.

For instance, Eko Disco’s single-phase meters now range from N135,987.5 to N161,035, while a three-phase meter is priced between N226,600 and N266,600. Ibadan Disco’s single-phase meters cost between N130,998 and N142,548, with three-phase meters priced from N226,556.25 to N232,008. Prices are similarly tiered across other Discos, including Abuja, Kano, and Kaduna.

In April 2024, NERC initiated a shift by announcing the deregulation of meter prices under the MAP scheme. This policy was intended to improve the supply and transparency of meter pricing, allowing prices to be set through competitive bidding instead of a centralized model.

The deregulation is anticipated to drive increased competition among meter providers, enhancing cost-efficiency and service quality for consumers. MAPs are now permitted to operate across all Nigerian Discos, provided they meet specific regulatory standards for compliance and quality.

Previously, NERC-regulated meter prices often included subsidies to make them more affordable. However, this approach limited competition and transparency, making it harder for Discos and customers to secure favorable rates. The new deregulated structure aims to foster a more competitive market, improving pricing, service quality, and accountability among meter vendors.

Consumers can apply for meters through their Disco’s online portal, but the actual sale and pricing are managed by the MAPs, such as Mojec Asset Management, Wellsun Intelligent Technology, and Turbo Energy Ltd, among others. Earlier, MAPs had protested that NERC’s previously set prices were below their production costs, which led to a temporary shutdown of some Disco meter application portals.

In response to these challenges, Fola Akinola, CEO of Fermadec Group, indicated that meter vendors and Discos had been negotiating new rates that better reflect Nigeria’s fluctuating exchange rates. Akinola emphasized that the NERC should cease setting fixed prices for prepaid meters due to the unstable exchange rate.

After negotiations, NERC approved new prices in May 2024, with Discos committing to meter installations within 10 working days for customers. However, reports suggest some vendors have struggled to meet this timeframe, sparking further concerns over adherence to service standards. Additionally, meter prices are expected to undergo monthly review based on competitive bidding among MAPs, ensuring prices remain in line with economic realities.