NERC approves increase in electricity meter prices

NERC approves increase in electricity meter prices
NERC approves increase in electricity meter prices

The Nigerian Electricity Regulatory Commission (NERC) has granted approval for an increase in the prices of prepaid electricity meters in the country, as reported by the Daily Trust.

In a circular dated September 5, 2023, signed by Chairman Sanusi Garba and Commissioner of Legal, Licensing, and Compliance Dafe Akpeneye, the commission announced revised prices for prepaid meters.

Revised pricing for electricity meters

Under the new pricing structure, a single-phase prepaid meter will now cost N81,975.16k, up from the previous price of N58,661.69k, while a three-phase prepaid meter will be priced at N143,836.10k, compared to the previous cost of N109,684.36k.

The rationale behind this price adjustment is to establish a fair and reasonable pricing system for meters that benefits both Meter Asset Providers (MAPs) and end-user customers.

The circular outlines several key objectives:

  1. Ensure that MAPs can recover reasonable costs related to meter procurement and maintenance while also allowing for a viable return on investment.
  2. Assess the affordability of meter services for consumers to prevent excessive pricing that could burden end-users.
  3. Ensure that MAPs can continue providing meters to end-use customers given the prevailing economic conditions.

This adjustment in prepaid electricity meter prices aims to strike a balance between the interests of service providers and consumers in the Nigerian electricity market.