1730929213 images 23

Nigeria Faces New Meter Price Crisis as Costs Jump 28%

Kehinde Fajobi

Electricity Distribution Companies (DisCos) in Nigeria have announced an increase in meter prices, marking the second price hike in four months.

The cost of a single-phase meter has risen from approximately โ‚ฆ117,000 to as much as โ‚ฆ149,800, representing a 28.03 per cent increase, or an additional โ‚ฆ32,800 depending on the distribution company and vendor.

The new rates, posted on the DisCosโ€™ official X handle on Wednesday, came into effect on Tuesday, November 5, 2024, and reflect the recent deregulation of the Meter Asset Provider (MAP) scheme, as directed by the Nigerian Electricity Regulatory Commission (NERC).

In August 2024, an earlier hike had already impacted consumers, raising further concerns about meter affordability and access.

A breakdown of the recent pricing shows variation across DisCos and vendors. Eko DisCo lists its single-phase meter between โ‚ฆ135,987.5 and โ‚ฆ161,035, while three-phase meters range from โ‚ฆ226,600 to โ‚ฆ266,600.

Ibadan DisCoโ€™s prices range from โ‚ฆ130,998 to โ‚ฆ142,548 for single-phase meters and โ‚ฆ226,556.25 to โ‚ฆ232,008 for three-phase units.

Abuja DisCo now charges between โ‚ฆ123,130.53 and โ‚ฆ147,812.5 for single-phase meters and โ‚ฆ206,345.65 to โ‚ฆ236,500 for three-phase units.

Kano Electricity Distribution Co. offers single-phase meters at โ‚ฆ127,925 to โ‚ฆ129,999, and three-phase meters at โ‚ฆ223,793 to โ‚ฆ235,425.

Kaduna DisCo prices are set at โ‚ฆ131,150 to โ‚ฆ142,548.94 for single-phase and โ‚ฆ220,375 to โ‚ฆ232,008.04 for three-phase units.

In April, NERC announced the deregulation of meter prices under the MAP scheme, aiming to address long-standing supply issues and improve pricing transparency.

The new system allows for competitive bidding, which NERC expects to drive down prices and enhance service quality as providers compete for contracts.

NERCโ€™s policy shift also enables MAPs to operate across all distribution areas, although providers must still meet regulatory standards to ensure quality.

Before deregulation, prices were regulated and often subsidised, a model that aimed to make metering affordable but reportedly limited competition and transparency in the supply chain.

NERC anticipates that this open-market approach will foster a more dynamic metering ecosystem, benefiting both customers and DisCos through competitive pricing and improved accountability from providers.