Electricity regulator, the Nigerian Electricity Regulatory Commission (NERC), has approved an upward increase in the cost of acquiring prepaid electric meter in the country.
A single-phase prepaid meter will now cost N81,975.16, up from the previous N58,661.69, while the cost of a three-phase prepaid meter has been raised to N143,836.10, from the previous N109,684.36.
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In a circular, dated September 5, 2023, by NERC Chairman Sanusi Garba and the Commissioner of Legal, Licensing, and Compliance, Dafe Akpeneye, the commission explained that the increase was meant to create an equitable and sensible meter pricing system that would be fair to Meter Asset Providers (MAPs) and end-users.
As contained in the NERC circular, MAPs will ensure ability to recover reasonable costs associated with meter procurement and maintenance while ensuring that their pricing structure allows for a viable return on investment.
It will also evaluate affordability of meter services for consumers to prevent excessive pricing that could burden end-users.
Relying on the provisions of Section 8(1)(c) of the Regulations which provide that the costs of single-phase and three-phase meters for MAPs – inclusive of all other associated costs of installation and warranties shall be at the regulated rates approved by the commission – NERC approved the review of meter prices of MAP-issued meters.
The regulator added: “The approved meter prices are exclusive of Value Added Tax (VAT). The approved meter prices are also inclusive of 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.
“All DisCos and MAPs are to develop/implement customer enlightenment campaigns on the price 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.”