NERC INTRODUCES 40% INCREASE IN ELECTRICITY METER PRICES

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The Nigerian Electricity Regulatory Commission (NERC) has recently authorized a 40% surge in the prices of all classes of electricity meters, marking a revision from a 30% increase in November 2021. This adjustment aims to establish a fair pricing system beneficial to both Meter Asset Providers (MAPs) and end-users.

As per a circular dated September 5, 2023, signed by Chairman Sanusi Garba and Commissioner of legal, licensing, and compliance, Dafe Akpeneye, the cost of a single-phase prepaid meter will now stand at N81,975.16k, up from the previous N58,661.69k. Meanwhile, the price of a three-phase prepaid meter has risen to N143,836.10k from the prior N109,684.36k.

This move is in line with NERC’s efforts to ensure MAPs can recover reasonable costs associated with meter procurement and maintenance while still maintaining a viable return on investment. The commission is also taking steps to evaluate the affordability of meter services for consumers, preventing excessive pricing that could burden end-users.

Local meter manufacturers, experiencing a notable increase in the industry from 13 to 43 companies, have emphasized the need for increased government intervention to boost production capacity.

The Meter Manufacturers and Assemblers Association of Nigeria (MMAAN) has additionally called for an official Letter of Clearance from the Federal Government for their members; affirming their clearance from alleged diversion of power sector intervention funds intended for prepaid electricity meters.

MMAAN extends appreciation to the Central Bank of Nigeria (CBN) and the Nigerian Electricity Regulatory Commission (NERC) for their financial support and effective regulation of the mass metering program. The CBN’s request for commercial banks to freeze accounts of certain Meter Asset Providers in July 2022, later unfrozen after an investigation, has highlighted the challenges faced by the industry.

Sadly, the National Mass Metering Programme (NMMP) Phase 1 has been put on hold by the CBN, potentially threatening the livelihoods of local meter manufacturers and jeopardizing numerous job opportunities in the sector.

 

 

 

 

 

 

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