Electricity Meter Prices Surge Again in Nigeria Amid Ongoing Deregulation
Electricity Distribution Companies (DisCos) across Nigeria have announced an increase in prices for various models of electricity meters, marking the second price rise in a span of just four months. As of November 5, 2024, the price for a single-phase meter has jumped from about N117,000 to as high as N149,800, signifying an increase of 28.03 percent or N32,800, depending on the respective distribution company and meter vendor.
The recent price adjustments, which were shared on the official X handle of the DisCos on Wednesday, reflect the recent deregulation of meter asset providers, a directive issued by the Nigerian Electricity Regulatory Commission (NERC). This decision follows an earlier price hike in August 2024, heightening concerns over the affordability and accessibility of electricity among consumers.
A review of the pricing documents reveals significant variability in meter costs across different DisCos, influenced by factors such as vendor and specific meter type (single-phase or three-phase). For instance, Eko DisCo has set the price range for single-phase meters between N135,987.5 and N161,035, while three-phase meters are priced between N226,600 and N266,600. Ibadan DisCo customers will pay between N130,998 and N142,548 for single-phase meters, and between N226,556.25 and N232,008 for three-phase meters.
Under Abuja DisCo, customers can expect to pay between N123,130.53 and N147,812.5 for single-phase meters, with three-phase meters priced from N206,345.65 to N236,500. Kano DisCo customers will see prices ranging from N127,925 to N129,999 for single-phase meters and N223,793 to N235,425 for three-phase meters. Lastly, Kaduna DisCo’s pricing for single-phase meters will be set between N131,150 and N142,548.94, while three-phase meters will cost between N220,375 and N232,008.04.
In April, NERC enacted a notable policy shift by introducing the deregulation of meter prices as part of the Meter Asset Provider (MAP) scheme, designed to enhance the meter supply and pricing transparency within Nigeria’s electricity sector. According to NERC’s latest directives, under the MAP scheme, prices for meters will be determined through competitive bidding rather than a centralized pricing model.
This change is expected to create a more competitive landscape among meter providers, leading to improved cost efficiency and service delivery for end users. Furthermore, the deregulation allows MAP permit holders to offer metering services across various electricity distribution companies, provided they adhere to specific regulatory standards to maintain quality service.
Previously, NERC had regulated meter prices, which were often subsidized, aiming to make metering more affordable for consumers. However, this approach inadvertently stifled competition and reduced transparency in the supply chain, preventing DisCos and customers from securing better deals with meter vendors. With the new deregulation, NERC envisions a more vibrant metering ecosystem where both customers and DisCos can benefit from competitive pricing, enhanced service quality, and greater accountability among meter providers.
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