Alex Nelson
Wed, Sep 6, 2023 9:30 PM

NERC announces price increase for pre-paid electricity meters in Nigeria

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NERC announces price increase for pre-paid electricity meters in Nigeria
NERC has announced an increase in the prices of single-phase and three-phase pre-paid electricity meters in Nigeria. The decision aims to ensure fair pricing for both Meter Asset Providers and consumers. The price of single-phase meters will rise to N81,975.16k, while three-phase meters will increase to N143,836.10k. This move is expected to enable MAPs to recover their costs and promote a viable return on investment.

The Nigerian Power Regulatory Commission (NERC) has recently issued a circular announcing a price increase for single-phase and three-phase pre-paid electricity meters. The circular, numbered NERC/2023/020, was jointly signed by NERC Chairman, Sanusi Garba, and Commissioner for Legal, Licencing and Compliance, Dafe Akpeneye.

As per the circular, the cost of single-phase pre-paid meters will be raised to N81,975.16k from N58,661.69k, while three-phase pre-paid meters will see an increase to N143,836.10k from N109,684.36k.

NERC emphasizes that the price hike is necessary to ensure the fair and reasonable pricing of meters for both the Meter Asset Providers (MAPs) and end-users. By allowing MAPs to recover their costs associated with meter procurement and maintenance, this adjustment ensures a viable return on investment.

Moreover, NERC aims to prevent excessive pricing that could burden end-users by evaluating the affordability of meter services for consumers. The commission is committed to ensuring that MAPs are able to provide meters to end-users in line with the prevailing economic realities.

This price increase is expected to have significant implications in the energy sector of Nigeria. It will not only enable MAPs to meet their operational costs but also improve their ability to invest in the procurement and maintenance of meters. By ensuring fair pricing, the commission seeks to promote transparency and sustainability within the electricity distribution system.

These adjustments come as a part of NERC's ongoing efforts to enhance the efficiency and effectiveness of the country's power sector. The commission is focused on improving access to reliable electricity supply and empowering consumers with affordable pricing options.

As the implementation of MAPs continues to gather momentum, it is crucial to strike a balance between the cost recovery needs of the providers and the financial capacities of the end-users. NERC's decision, though aimed at sustainable pricing, may pose initial challenges to some consumers. However, it is expected that the long-term benefits, such as improved service quality and reduced estimated billing, will outweigh the short-term difficulties.

The upward adjustment in meter prices reflects the evolving dynamics of Nigeria's energy sector. As the country strives for a more robust and equitable power distribution framework, it is essential to ensure all stakeholders work collaboratively towards achieving a sustainable and inclusive energy future.

Source of content: OOO News 2023-09-06 News

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