- Electricity meter prices across Nigeria have surged by up to 28%, marking the second hike in four months due to NERC’s deregulation of meter asset providers.
- New meter prices vary widely across distribution companies, with single-phase meters now costing between N123,000 and N161,000, raising concerns over consumer affordability.
Electricity Distribution Companies (DisCos) in Nigeria have announced a sharp increase in the prices of electricity meters, marking the second price hike in just four months. As of November 5, 2024, the cost of a single-phase meter has risen from approximately N117,000 to as much as N149,800, reflecting a 28.03% increase (about N32,800), depending on the DisCo and the meter vendor.
This adjustment follows an earlier price rise in August 2024, which has intensified concerns over the affordability and accessibility of electricity for consumers.
The DisCos disclosed the new prices via their official social media channels. They came after the deregulation of meter asset providers, as directed by the Nigerian Electricity Regulatory Commission (NERC). This deregulation, part of a broader policy change in April 2024, allows for more competitive pricing of electricity meters and is intended to address the long-standing issues of meter scarcity and high costs in Nigeria’s electricity sector.
The deregulation means that NERC will centrally control meter prices but will be determined through competitive bidding among Meter Asset Providers (MAPs) instead. This is expected to bring more transparency to pricing and create a more competitive environment for meter vendors, potentially benefiting both consumers and the DisCos by improving cost efficiency and service delivery.
A breakdown of the new meter prices shows significant variations across different DisCos, influenced by meter type (single-phase or three-phase) and the specific vendor involved. For example, under Eko DisCo, single-phase meters are priced between N135,987.5 and N161,035, while three-phase meters cost N226,600 and N266,600. Similarly, Ibadan DisCo customers will pay between N130,998 and N142,548 for single-phase meters, with three-phase meters ranging from N226,556.25 to N232,008.
In Abuja, single-phase meters cost N123,130.53 and N147,812.5, while three-phase meters range from N206,345.65 to N236,500. In Kano, single-phase meters range from N127,925 to N129,999, while three-phase meters range between N223,793 and N235,425. Lastly, customers under Kaduna DisCo will pay between N131,150 and N142,548.94 for single-phase meters and N220,375 and N232,008.04 for three-phase meters.
The deregulation of meter prices under NERC’s Meter Asset Provider (MAP) scheme was intended to increase the country’s availability and affordability of electricity meters. Before this policy change, NERC had fixed meter prices to make them more accessible to consumers.
Still, this approach was criticised for reducing competition and limiting the transparency of the pricing process. With the new deregulation, NERC hopes to stimulate a more competitive meter supply market, where DisCos and consumers can benefit from more efficient pricing and improved services.
The recent price increases have raised concerns that the rising cost of meters may further exacerbate the affordability challenges faced by electricity consumers in Nigeria, especially as the country struggles with power supply issues and widespread electricity shortages.
While deregulation is expected to increase competition among meter vendors, it remains to be seen whether the promised benefits will outweigh the impact of these price hikes on consumers.