The Nigerian Electricity Regulatory Commission (NERC) has approved a 40% increase in the prices of electricity meters, following a previous review in November 2021 that raised costs by 30%. The price hike, based on changes in macroeconomic indicators, has drawn criticism for its potential impact on the struggling working class and poor citizens. This article argues for measures to address the metering gap without burdening consumers and calls on NERC to prioritize the needs of the population.
The Nigerian Electricity Regulatory Commission (NERC) has recently faced criticism for its decision to approve a 40% increase in the prices of electricity meters across all classes. This move follows a previous review in November 2021 that had already raised costs by 30%. The pricing increase has drawn ire from various quarters, as it is expected to further burden the struggling working class and poor citizens.
NERC justified its decision by citing changes in macroeconomic indicators such as inflation and foreign exchange rates. However, the approved prices for meters do not include the 7.5% Value Added Tax (VAT), further exacerbating the financial strain on consumers. This price hike raises concerns about the government's commitment to addressing the needs of its citizens, particularly at a time when many are already facing significant economic challenges.
Furthermore, NERC acknowledges that the high tariffs remain a leading cause of the country's metering gap, which currently exceeds 60%. With over seven million customers reliant on estimated billing due to a lack of metered electricity, access to reliable and affordable electricity remains a significant challenge for many Nigerians.
The decision to increase meter prices is counterproductive to the goal of closing the metering gap and improving service delivery. Rather than burdening consumers with additional costs, NERC should focus on implementing measures that benefit the majority of the population. This includes improving power supply, reducing electricity tariffs, and addressing the accountability and service delivery issues faced by the Electricity Distribution Companies (DisCos).
NERC needs to reassess its approach and consider reintroducing installment payment options to ease the financial burden on consumers. By doing so, it can ensure a more equitable and sensible meter pricing system that benefits both Meter Asset Providers (MAPs) and end-users. The government should also provide support and intervention in the sector to enhance production and bridge the metering gap without placing the burden solely on consumers.
Additionally, NERC must address the issue of estimated billing by compelling the DisCos to provide meters for every consumer. This approach would ensure a fair and transparent billing system that eliminates the arbitrary estimation of electricity usage. It is crucial for NERC to prioritize the needs of the population and work towards a sustainable solution that delivers reliable and affordable electricity for all Nigerians.
In conclusion, the recent hike in electricity meter prices approved by NERC raises concerns about the government's commitment to improving the power sector and addressing the struggles faced by its citizens. Instead of burdening consumers further, NERC should focus on measures that bridge the metering gap, improve power supply, and reduce tariffs. It is time for the regulator to prioritize the needs of the population and work towards a fair and transparent billing system that benefits all Nigerians.
Source of content: OOO News 2023-09-11 News
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