The recent removal of pricing regulations for Electricity meters in Nigeria has led to a significant rise in costs, particularly for three-phase, which are now nearing ₦250,000. This surge has raised alarms regarding the accessibility and affordability of meters, especially for customers who are still grappling with the challenges of estimated billing. The disclosed average prices by different Distribution Companies (DisCos) show a notable increase in prices nationwide. The federal government is taking action to tackle this problem by buying 3.5 million meters to fill the gap. Yet, with about seven million customers lacking meters, there are substantial obstacles ahead.
In Abuja, the price range for single-phase meters is from ₦105,000 to ₦131,000, while three-phase range from ₦198,000 to ₦220,000. For Kaduna DisCo, single-phase are priced between ₦120,000 and ₦132,000, while three-phase cost between ₦206,000 and ₦215,000. In Ikeja DisCo, single-phase range from ₦120,000 to ₦125,000, and three-phase are priced between ₦213,000 and ₦225,000. Eko DisCo offers a range of meter options, including single-phase priced from ₦117,000 to ₦135,000 and three-phase ranging from ₦145,000 to ₦247,000.
NERC implemented a new policy to deregulate meter prices and providers.
Experts in the energy sector have recognised the potential benefits of deregulating Meter Asset Providers in Nigeria to address the country’s metering gap. However, they are concerned that this decision may not fully address larger issues like Inflation and the increasing cost of living. The Nigerian Electricity Regulatory Commission’s (NERC) move to deregulate Meter Asset Providers (MAP) was initially praised as a crucial move to tackle Nigeria’s ongoing metering challenges. Nevertheless, this choice has led to substantial increases in prices, transforming the resolution into a fresh dilemma for numerous Nigerians.
Also, the sudden increase in metering expenses, going from ₦80,000 to over ₦200,000 in a span of one year, has compounded the challenge faced by many households in dealing with estimated billing. However, just four months ago, NERC implemented a new policy to deregulate meter prices and providers, initiating a willing-buyer, willing-seller framework to promote market competition. Consumers were meant to have the power to buy from any authorised seller, breaking free from the need to depend on DisCos.
Millions of households are struggling to break free from overcharging.
Economic factors and inflation have further worsened the increase in prices due to deregulation. According to the National Bureau of Statistics, there has been a notable 10% rise in the number of customers being billed based on estimates, with the figure jumping from 5.83 million in Q4 2023 to 6.43 million in Q1 2024. Millions of households are struggling to break free from overcharging and mistreatment by their utility providers, but they are facing new challenges in obtaining a prepaid meter.
Responding to the NERC announcement, DisCos and their providers have introduced higher prices, citing the deregulation policy and economic difficulties as reasons for the increase. The new prices start at ₦100,000, marking a substantial increase from the rates set by NERC in September 2023. The price range for single-phase meters has increased from ₦81,975 to around ₦125,000, and three-phase meters are now selling for prices ranging from ₦145,000 to ₦247,000, depending on the DisCo and vendor.
Related article: Non-performing DisCos will be sanctioned – FG
Moreover, the rising prices of meters in Nigeria are adding to the financial challenges faced by the population, which is already dealing with high inflation, increased cost of living, and recent electricity tariff hikes for some customers. While Minister of Power Adebayo Adelabu aims to eliminate estimated billing by the end of the year, achieving this goal seems more difficult with each day. New data released for the first quarter of 2024 shows that estimated billing has increased by 10%, impacting more than six million households. This has led to worries that the government might increase Tariffs and focus more on pricing that reflects the actual costs.