Citing Inflation, High Landing Cost, Others, NERC Approves Increase in Prices of Pre-paid Meters

•Single phase meters now N81,975, Three Phase N143,836

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

The Nigerian Electricity Regulatory Commission (NERC), yesterday, announced the approval of a 40 per cent increase in the price of single phase prepaid meters from the previous N58,661.69 to N81,975.16.

In addition, NERC moved the price of the three – phase smart prepaid meter from N109,684.36 to N143,836.10, an increase of over 31 per cent.

The order to review the unit costs of end-use meters under the Meter Asset Provider and National Mass Metering Regulations, was jointly signed by the commission’s Chairman, Sanusi Garba and the Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye.

Explaining that the order took effect from September 6, 2023, the power sector regulator explained that it would remain in force until amended or revoked by subsequent orders issued by the commission.

NERC stated that it was relying on the part of the law which mandates it to ensure that no licensee shall supply electricity, after the expiry of the date appointed by the commission, except through installation of a proper meter in accordance with the extant regulations.

Accordingly, it listed the objectives of the metering programme as the closure of the metering gap through accelerated roll out of meters and the elimination of the prevalent practice of estimated billing in the Nigerian Electricity Supply Industry (NESI).

In addition, it stated that the move would help attract private investment in the provision of meters and metering services in the sector as well as enhance revenue assurance at the retail end of the industry.

NERC explained that the closure of the metering gap for end-use customers was fundamental to the financial sustainability of the NESI as end-use meters provide revenue assurance to both the utility and their end-use customers.

“The Meter Asset Provider (MAP) scheme is one  of the four frameworks in the regulations for the provision of meters to end-use customers in NESI.

“Section 8(1c) 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 the 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,” NERC maintained.

NERC said it also considered relevant data on the significant changes in macroeconomic indicators from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics(NBS) as benchmarks for the meter price review.     

According to NERC, the new order will ensure the fair and reasonable pricing of meters to both MAPs and end-use customers and ensure its ability to recover reasonable costs associated with meter procurement and maintenance while ensuring that their pricing structure allows for a viable return on investment.

In addition, NERC noted that it would help evaluate the affordability of meter services for consumers, aiming to prevent excessive pricing that could burden end-users and make sure that they are able to provide meters to customers in the prevailing economic realities.

The commission further stated that the approved meter prices were exclusive of Value Added Tax (VAT), but inclusive of the revised Nigerian Electricity Management Services Agency (NEMSA) sealing cost which is N842.80 per unit of single phase and N1,100.80 for three phase meters.

While urging all MAPs to adjust their prices to reflect the approved rates, NERC stressed that they shall supply meters previously paid for by end-use customers prior to the commencement of the order at the prevailing rate when payment was made by the customers without additional increase in cost.

“All Discos and MAPs are to develop/implement customer enlightenment campaigns on the rice review along with a schedule on the implementation of their meter rollout plans.

“All MAPs shall continue to file monthly sales and meter installation returns with the commission,” the power sector regulator stated.