Electricity Distribution Companies, DisCos, in Nigeria have introduced new price hikes for various types of electricity meters, marking the second price increase in just four months.
The cost of a single-phase meter has surged from around N117,000 to as much as N149,800, depending on the distribution company and meter supplier.
This new pricing structure, which took effect on Tuesday, November 5, 2024, aligns with the deregulation of Meter Asset Providers, MAP, as mandated by the Nigerian Electricity Regulatory Commission, NERC.
This revision follows an earlier price increase in August 2024, deepening concerns among electricity users regarding the growing cost and availability of meters.
The updated prices vary across the different DisCos, influenced by factors such as the meter type (single-phase vs. three-phase) and the vendors involved.
Eko DisCo: Single Phase Meter: N135,987.5 – N161,035. Three Phase Meter: N226,600 – N266,600.
Ibadan DisCo: Single Phase Meter: N130,998 – N142,548. Three Phase Meter: N226,556.25 – N232,008.04.
Abuja DisCo: Single Phase Meter: N123,130.53 – N147,812.5, Three Phase Meter: N206,345.65 – N236,500.
Kano Electricity: Single Phase Meter: N127,925 – N129,999.75. Three Phase Meter: N223,793 – N235,425
Kaduna DisCo: Single Phase Meter: N131,150 — N142,548.94. Three Phase Meter: 220,375 — N232,008.04
In April, NERC introduced a significant shift in policy with the deregulation of meter pricing under the Meter Asset Provider, MAP, scheme, aimed at resolving long-standing issues related to meter availability and pricing transparency in Nigeria’s electricity sector.
Under the new system, meter prices will no longer be centrally regulated by NERC but will be determined through competitive bidding. This change is intended to stimulate greater competition among meter providers, leading to more cost-effective pricing and improved service delivery for end-users.
The deregulation also lifts previous operational restrictions, allowing MAPs to offer metering services across all DisCos in Nigeria. However, MAPs are still required to meet certain regulatory standards to ensure quality and compliance.
Previously, NERC had regulated meter prices across all DisCos, subsidizing costs to make meters more affordable. While this approach aimed to reduce financial burdens for consumers, it inadvertently suppressed competition and hindered pricing transparency. This stifled the ability of DisCos and consumers to negotiate better deals with meter vendors, contributing to inefficiencies in the system.
With deregulation now in effect, NERC envisions a more dynamic and competitive metering market, where both DisCos and consumers can benefit from better pricing, enhanced service quality, and greater accountability from meter suppliers.
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