The second price increase in four months has been announced by Nigerian power distribution companies for a variety of electricity meter models.
The DisCos claim that the price of a single-phase meter has increased from about N117,000 to N149,800.
Depending on the distribution firm and meter seller, this sum represents a 28.03 percent increase, or N32,800.
On Wednesday, the discos’ official X handle announced new prices that would go into effect on Tuesday, November 5, 2024.
Additionally, it reflects the Nigerian Electricity Regulatory Commission’s directive to de-regulate meter asset providers.
The affordability and accessibility concerns of electricity users have been heightened by this upward revision, which comes after an earlier rise in August 2024.
According to an examination of the records, vendors and meter models (single-phase and three-phase) have an impact on meter pricing, which differ throughout DisCos.
A single-phase Metre from Eko DisCo was priced between N135,987.5 and N161,035, and a three-phase Metre was priced between N226,600 and N266,600.
Customers will pay for a single-phase meter between N130,998 and N142,548 and for a three-phase meter between N226,556.25 and NN232,008, according to Ibadan DisCo.
Abuja DisCo customers will pay between N123,130.53 and NN147,812.5 for single-phase meters and between N206,345.65 and NN236,500 for three-phase meters.
Customers of Kano Electricity Distribution would pay N127,925 to N129,999 for a single-phase meter and N223,793 to NN235,425 for a three-phase meter, according to the company.
Kaduna DisCo further stated that N220,375—N232,008.04 would be paid for three-phase meters and N131,150—N142,548.94 for single-phase meters.
By announcing the deregulation of meter pricing under the Metre Asset Provider plan for end-user customers in April, the Nigerian Electricity Regulatory Commission brought about a substantial change in policy.
The goal of this action is to resolve persistent problems with meter supply and pricing transparency in the electrical industry.
The most recent directive from NERC states that competitive bidding, as opposed to centralization, will henceforth be used to decide meter rates under the MAP program.
More competition among meter providers is anticipated as a result of this change, which will ultimately improve end users’ service and cost effectiveness.
Furthermore, the deregulation eliminates previous operational limitations, enabling holders of MAP permits to offer metering services to all Nigerian energy distribution firms.
MAPs must, nevertheless, adhere to certain legal regulations in order to guarantee compliance and uphold service delivery quality standards.
In the past, NERC controlled meter pricing, which were frequently subsidized by all DisCos to lower consumer costs. Although the goal of this methodology was to lower the cost of metering, it unintentionally suppressed competition and reduced supply chain transparency.
DisCos and consumers were consequently unable to bargain with or investigate better offers from meter vendors, which led to systemic inefficiencies.
Now that deregulation has taken effect, NERC expects a more dynamic metering environment where consumers and DisCos can take advantage of better service quality, competitive pricing, and increased responsibility among meter providers.