Nigerian power distribution companies announced a fresh increase in electricity meter prices, marking the second price adjustment within four months.
The increase has sparked backlash from consumers, who describe the hike as “wicked,” especially given the ongoing economic challenges across the country.
The new costs mean that a single-phase meter, previously sold for around N117,000, will now cost as much as N149,800—a 28.03% increase or an extra N32,800, depending on the distribution company and specific meter vendor.
The announcement, made via the official X handle of the Discos, states that the updated prices took effect on November 5, 2024.
This price revision reflects the recent deregulation of meter asset providers, directed by the Nigerian Electricity Regulatory Commission, which aims to create a competitive metering market.
The increase follows a similar hike in August 2024, adding to the growing concerns around affordability and access to electricity metering in Nigeria.
A deeper look into the pricing documents reveals varied meter costs across different Discos, influenced by factors like vendor and model, single-phase or three-phase.
For instance, Eko Disco lists single-phase meters between N135,987.5 and N161,035, while the price range for three-phase meters is N226,600 to N266,600.
In contrast, Ibadan Disco offers single-phase meters from N130,998 to N142,548 and three-phase meters between N226,556.25 and N232,008.
Abuja Disco’s single-phase meters are priced from N123,130.53 to N147,812.5, with three-phase meters ranging from N206,345.65 to N236,500. Kano Electricity Distribution sets single-phase meters at N127,925 to N129,999 and three-phase meters at N223,793 to N235,425.
Kaduna Disco’s single-phase meters range from N131,150 to N142,548.94, while three-phase meters are between N220,375 and N232,008.04.
In April, NERC introduced a major policy shift, allowing meter prices under the Meter Asset Provider scheme to be determined through competitive bidding rather than central regulation.
This move aims to address persistent issues with meter supply and pricing transparency.
According to NERC, the deregulated structure is expected to foster greater competition among providers, leading to better cost efficiency and improved service for consumers.
Additionally, deregulation enables MAP permit holders to offer metering services across all DisCos, removing past restrictions, although they must still meet specific regulatory standards to maintain quality and compliance.
Previously, NERC regulated meter prices, often subsidizing them across all DisCos to keep costs low for customers.
However, this model had unintended effects, limiting competition and transparency and stifling negotiations between DisCos and vendors for better pricing.
With deregulation, NERC envisions a more dynamic market, allowing DisCos and consumers to benefit from competitive pricing, enhanced service, and greater accountability from meter vendors.
Currently, meters are supplied by companies such as Mojec Asset Management, Wellsun Intelligent Technology, Gosslink Engineering, Turbo Energy Ltd, MBH Power, and CIG Metering Assets.
While the meters are sold directly by these providers, applications are processed through DisCos’ online portals. Earlier this year, meter vendors protested NERC’s approved pricing, claiming it was below production and import costs.
This led to a temporary shutdown of meter application portals as vendors resisted supplying meters at unsustainable prices.
CEO of Fermadec Group, Fola Akinola, explained in April that DisCos had paused meter applications to realign prices with economic realities, particularly the fluctuating exchange rate.
Akinola emphasized the need for NERC to allow market-driven pricing for prepaid meters given the instability in currency rates.
“Before, the price used to be fixed, but now, each seller is going to give his or her price, depending on the type of meter,” he said.
Following weeks of negotiation, NERC approved a price adjustment, aligning meter costs with the foreign exchange market.
DisCos assured customers that meters would be installed within ten business days, though some customers reported that vendors failed to meet these guidelines. Going forward, meter prices will be subject to monthly reviews based on vendor bidding processes.
Consumers have been vocal about their dissatisfaction with the increased costs.
Executive Director of the Electricity Consumers Protection and Advocacy Centre, Princewill Okorie, rejected the new prices, arguing they lack justification.
He highlighted that DisCos had received N59 billion from the N200 billion National Mass Metering Programme in 2020 but had only repaid N7 billion.
“What do you want me to say? They keep increasing the meter price, why are they wicked? N200bn was earmarked for the NMMP that was to be implemented in three phases. Only the pilot phase of N59bn was implemented. And what the 11 Discos could pay back was only N7bn. What did they use the rest of the money for?”
Okorie continued, “Since after that N59bn, what has happened to the rest of the money when you removed N59bn from N200bn? Are they not the same people who are paying for this meter that are paying for the shortfall as part of their electricity bills? The regulator increased the tariff, saying they wanted the Discos to get money to pay back the loan. Who are the people that got the meters?”
When questioned about the impact of exchange rate fluctuations on meter prices, Okorie responded, “The N200bn, where is it? Is it the exchange rate that made the Discos not pay back the N59bn loan? Between 2020 and 2024, they were only able to pay N7bn. Why are consumers paying for meters when there is a meter acquisition fund?”
