From Monday, November 15, 2021, Nigerians will begin paying more for both single and three-phase electricity meters as the federal government has approved a 30.6percent hike in prices.
As contained in a circular addressed to managing directors, all electricity distribution companies, and all meter asset providers by the Nigerian Electricity Regulatory Commission, the price of a single-phase meter is expected to increase by 30 percent to N58,661 from the current N44,896, indicating a 30.6percent rise in price.
The circular, with reference number NERC/REG/MAP/GEN/751/2, dated November 11, 2021, was titled ‘Review of the unit price of end-use meters under the Meter Asset Provider and National Mass Metering Regulations’.
A similar increase is expected in the price of a three-phase meter which according to the circular will be sold for N N109,684 up from N82,855
The federal government had launched the National Mass Metering Programme (NMMP) to increase the country’s metering rate and eliminate arbitrary estimated billing.
In pursuant of this program, the Central Bank of Nigeria in October 2020, issued the Framework for Financing of National Mass Metering Programme, under which the bank is expected to provide financing support to the Distribution Companies (DisCos) for the procurement of meters for customers.
Commenting on the impact of the proposed price increase of meters, Bala Ibrahim, an Abuja based economist said, “the increase in the cost of the prepaid meters will discourage consumers from applying for meters in line with President Muhammadu Buhari’s directive for mass metering to end estimated billing by the electricity Distribution Companies (DisCos).
“Considering the fact that economic activities are gradually picking up, this is not the right time for any increase, Nigerians are already battling with the high cost of food and other days to day expenses.”
An official at the Apo office of the Abuja Electricity Distribution Company, Ceaser Eke, confirmed the proposed increase to our correspondent, said that the increase may further affect the response of customers to the prepaid meter program of the federal government.
According to him, the program has so far received diverse responses from electricity consumers, adding that while some customers have willingly paid the price to get the meters others were insisting on getting free meters. “There are no free prepaid meters anywhere,” he said.
He explained that the total cost charged is usually shared among the Licensed Electrical Contractors Association of Nigeria (LECAN) being the amount for processing and the others will be paid to Mojec Meter Asset Management Company, for the meter.
“People come here and say that they need free meters, let me be sincere with you, there was a time when we distributed free meters to the villages but there is no way you can get a free meter anymore. I heard the government and the central bank are giving out money to Discos for free meters, but the truth is that we are yet to see or receive those monies.”
“The issue right now is that the government is saying it is free but it is not. Whoever is serious about getting a meter, whoever needs it immediately will pay up to N45,000 for a single phase. But customers applying for free meters, I don’t know how long it will take.
“I will advise you to continue under the estimated bill because we do not know the fate of those customers that are applying for free meters.
“The government saying it is free is even making it difficult for everyone, it was better when customers knew they were to pay for it,” he said.
The case was the same for the Bwari and Gwarinpa branches, as officials confirmed to our correspondent that there are no free meters readily available for customers.
Meanwhile, a statement from the office of the Special Adviser on Infrastructure to the President, Ahmad Zakari, had assured that the initiative will ensure consumers are billed appropriately for the electricity they consume by installing meters ‘free of charge’ in households and business premises that are currently unmetered.
Zakari had noted the distribution of about 750,000 meters nationwide in the first eight months of the program.
“This is a marked improvement in terms of the speed of installation of meters compared to its predecessor (the Meter Asset Provider-MAP programme) which recorded 350,000-meter installations in just over 18 months. Essentially the Nigerian meter industry has increased local installation capacity by a multiple of five,” he said.
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