Two years after a similar review, the Nigerian Electricity Regulatory Commission (NERC), yesterday approved an upward review of prices for the all classes of electricity meters by 40 per cent.
NERC had in a similar review in November 2021 increased cost of electricity meters by 30 per cent.
The 2021 hike raised the price of a single-phase meter from N44,896.17 to N58,661.69, while the price of a three-phase meter moved from N82,855.19 to N109,684.36.
According to a circular dated September 5, 2023, and signed by the Chairman, Sanusi Garba, and the Commissioner of legal, licensing, and compliance, Dafe Akpeneye, the commission indicated that a single-phase prepaid meter will now cost N81,975.16k, up from the previous N58,661.69k, while the cost of a three-phase prepaid meter has been hiked to N143,836.10k from the previous N109,684.36k.
The commission explained further that the price adjustment was to create an equitable and sensible meter pricing system that would be fair to both Meter Asset Providers (MAPs) and end-user customers.
“Ensure MAP’s ability to recover reasonable costs associated with meter procurement and maintenance while ensuring that their pricing structure allows 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 said.
The 2021 hike raised the price of a single-phase meter from N44,896.17 to N58,661.69, while the price of a three-phase meter from N82,855.19 to N109,684.36.
Local meter manufacturers had in June this year claimed that the industry had witnessed an increase from 13 to 43 companies, with a commensurate escalation in manufacturing capacity officially assessed at 4.9 million meters per year, Meter Manufacturers and Assemblers Association of Nigeria (MMAAN) have urged the government to increase intervention in the sector to enhance production.
MMAAN also appealed to the Federal Government to issue an official Letter of Clearance to their members that were cleared from the alleged diversion of power sector intervention funds meant for the procurement of prepaid electricity meters under the National Mass Metering Programme (NMMP).
The group appealed in a statement that was jointly signed by its Acting President, Ademola Agoro and the Secretary, Duro Omogbenigun.
The meter manufacturers also commended the Central Bank of Nigeria (CBN) and the Nigerian Electricity Regulatory Commission (NERC) for funding and effectively regulating the mass metering programme.
The CBN had in July 2022, through an order of the Federal High Court, Lokoja, Kogi State, requested commercial banks to freeze 157 accounts belonging to 10 Meter Asset Providers (MAPs) for allegedly diverting power sector intervention funds meant for the procurement of prepaid meters under the NMMP.
The apex bank had also later in August of the same year, confirmed unfreezing the bank accounts of the affected companies after an investigation into the matter was concluded.
It stated sadly, the NMMP Phase 1 has been put on hold by the CBN, which it said effectively threatens the survival of local meter manufacturers, with myriads of potential job loss.
Source: Sun
