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NERC approves a significant increase in prepaid electricity meter costs

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The Nigerian Electricity Regulatory Commission (NERC) has granted approval for an increase in the prices of prepaid electricity meters, as announced in a circular marked NERC/2023/020 jointly signed by the commission’s chairman, Sanusi Garba and its commissioner for legal, licensing, and compliance, Dafe Akpeneye.

Effective Wednesday, September 6, 2023, NERC disclosed that the cost of a single-phase meter will now stand at N81,975.16k, a significant rise from the previous price of N58,661.69k.

Similarly, the price of a three-phase meter has been elevated to N143,836.10 from its previous rate of N109,684.36.

The regulatory agency justified the price adjustment, emphasizing the need to ensure equitable and reasonable meter pricing for both meter asset providers (MAP) and end-user consumers.

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This move is aimed at enabling MAPs to recover their justifiable expenses associated with meter procurement and maintenance while ensuring a sustainable return on investment.

NERC clarified that the approved meter prices do not include value-added tax (VAT), and they also encompass the revised Nigerian Electricity Management Services Agency (NEMSA) sealing cost.

“All MAPs shall adjust their prices to reflect the approved rates. All MAPs shall supply meters previously paid for by end-use customers prior to the commencement of this order at the prevailing rate when payment was made by the customers without additional increase in cost,” stated NERC in its announcement.

In addition, NERC has directed all electricity distribution companies and MAPs to initiate customer awareness campaigns regarding the price revision, accompanied by a clear schedule for implementing their meter rollout plans.

It is worth noting that the federal government had previously announced the impending price increase for single-phase and three-phase prepaid meters in November 2021.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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