No To Electricity Meter Price Hike 

The Nigerian Electricity Regulatory Commission (NERC) has approved a 40 per cent increase in the prices of all classes of electricity meters, following a previous review in November 2021 that had already raised costs by 30 per cent. As a result, the price of a single-phase meter rose from N44,896.17 to N58,661.69, and the price of a three-phase meter increased from N82,855.19 to N109,684.36.
In a circular dated September 5, 2023, signed by the Chairman, Sanusi Garba and Commissioner of Legal, Licensing, and Compliance, Dafe Akpeneye, the commission announced higher prices for single-phase and three-phase prepaid meters. The new cost of a single-phase prepaid meter is N81,975.16k, up from N58,661.69k, while a three-phase prepaid meter now costs N143,836.10k, previously N109,684.36k.
NERC has based its decision to increase meter prices on the changes in macroeconomic indicators, such as inflation and changes in foreign exchange rates. The commission emphasised that the approved prices for metres do not include the 7.5 per cent Value Added Tax (VAT). It said this new price regime aims to establish a fair and reasonable pricing structure for both Meter Asset Providers (MAPs) and end-use customers.
The regulatory body has provided further clarification on the price adjustment, emphasising the need for an equitable and sensible meter pricing system that benefits both Meter Asset Providers (MAPs) and end-user customers. The objective, according to NERC, is to ensure that MAPs can recover reasonable costs associated with meter procurement and maintenance, while also allowing for a viable return on investment.
In June this year, local meter manufacturers in Nigeria announced a growth in the industry, with the number of companies increasing from 13 to 43. This expansion has led to a corresponding rise in manufacturing capacity, officially assessed at 4.9 million meters per year. However, the Meter Manufacturers and Assemblers Association of Nigeria (MMAAN) has called upon the government to further support and intervene in the sector to enhance production.
We vehemently oppose the recent hike in the cost of electricity meters amid the financial struggles faced by a majority of Nigerians. This increase is yet another hurdle for the already struggling working class and poor citizens, pushing them further into poverty. The hike will harm the livelihoods of many, as increased prices will cause further strain on already stretched budgets. Electricity meter prices should remain stable and accessible to all citizens, regardless of their income level.
We urge the Nigerian government to reconsider its current policies and instead focus on implementing measures that will benefit the majority of its citizens, especially those who are struggling to make ends meet. Unfortunately, this decision is unlikely to improve the longstanding challenges in the power sector, including metering gaps and unstable supply. NERC has acknowledged that the high tariffs are a leading cause of the country’s metering gap, which currently exceeds 60 per cent.
That is why the government and the regulators should implement measures to address the metering gap without transfering the burden on consumers, improve power supply, and reduce electricity tariffs. As the regulator, NERC must assess metre prices in relation to the inflation rate to ensure sustainability. Arbitrary increases would hinder the government’s goal of closing the metering gap by reducing demand. Therefore, NERC needs to reintroduce instalment payment options.
Metering is critical in electricity distribution and is solely the responsibility of the Electricity Distribution Companies (DisCos). The meter is an asset that enables the DisCos to operate efficiently. Thus, it is unfair and unacceptable to incumber consumers with meter provision. They should not be taken advantage of. Regrettably, NERC has consistently favoured operators over vulnerable consumers, increasing cost without improving service delivery.
The last tariff increase aimed to enhance service quality, but it remains uncertain if any actual improvements were achieved. Consumers were grouped into various categories based on promised hours of electricity supply, yet many did not receive the specified amount. Despite the DisCos’ inability to meet their supply targets, NERC took no action against them. Instead, the commission approved a new tariff for the DisCos, seemingly disregarding their failure to meet supply demands.
Furthermore, individuals and communities have been investing in their infrastructure by purchasing transformers, cables, poles, and other equipment, but they are not being refunded by the DisCos or NERC. This lack of accountability and failure to address consumer concerns raise serious doubts about the effectiveness of the current regulatory framework in the electricity sector.
Recent research has unveiled some concerning findings regarding Nigeria’s electricity sector. In the first quarter of 2023, the country had a total of 12,378,243 registered electricity customers. However, only 5,360,434 of them had access to metered electricity, leaving over seven million customers reliant on estimated billing. This situation raises serious concerns about the accessibility of electricity for Nigerians.
With a population of over 200 million, the number of registered electricity consumers indicates a low percentage of people connected to the power grid. Consequently, any increase in meter prices would further exacerbate the difficulties faced by Nigerians in accessing reliable and affordable electricity. The government and relevant stakeholders must address this issue promptly and find sustainable solutions that prioritise the needs of the population.
There is a pressing need for NERC to end estimated billing by compelling the DisCos to provide meters for every consumer. This approach is the most appropriate way forward, instead of overburdening consumers with additional costs for meters that should be the statutory responsibility of the DisCos. By ensuring that every consumer has access to a meter, NERC can bring about a fair and transparent billing system, eliminating the arbitrary estimation of electricity usage.