Power distribution companies (Discos) across Nigeria have announced an increase in the prices of electricity meters, marking the second price hike in four months. This rise, effective from November 5, 2024, has sparked strong reactions from consumers, who decried the hike as “unjust” given the nation’s economic challenges.
According to the Discos, the cost of a single-phase meter now ranges from N117,000 to N149,800, reflecting an increase of about 28.03% across various distribution companies. For example, Eko Disco’s single-phase meter prices are between N135,987 and N161,035, while Abuja Disco’s prices range from N123,130 to N147,812. Prices for three-phase meters have similarly risen, with adjustments differing by company and vendor.
The price increase follows the Nigerian Electricity Regulatory Commission’s (NERC) April 2024 decision to deregulate meter pricing under the Meter Asset Provider (MAP) scheme. Intended to foster competition, this policy allows vendors to set prices through competitive bidding rather than a centralized rate. NERC anticipates that deregulation will increase transparency, affordability, and efficiency in the meter supply chain, which has previously faced criticism for inefficiencies and a lack of transparency.
However, some vendors have expressed that the previous regulated prices were unsustainable given rising production costs and exchange rate volatility. During a recent negotiation period, vendors temporarily halted meter supplies, claiming that they could no longer supply meters below production costs.
Amid the backlash, Princewill Okorie, Executive Director of the Electricity Consumers Protection and Advocacy Centre, condemned the increase, questioning the Discos’ management of funds from the National Mass Metering Programme (NMMP). The program, launched in 2020 with N200 billion earmarked for nationwide meter acquisition, saw only N59 billion implemented, with Discos reportedly repaying just N7 billion to date. Okorie argued that consumers should not bear the burden of meter price hikes, especially when a significant portion of funds from the NMMP remains unaccounted for.
The Discos maintain that the latest increase reflects economic pressures, notably the exchange rate fluctuations impacting production and import costs. Nevertheless, consumers and advocacy groups continue to challenge the justification for higher prices, urging the NERC and the government to enforce accountability measures and explore more accessible solutions for Nigeria’s power sector.
