The Nigerian Electricity Regulatory Commission (NERC) has approved an upwards price increase in the price of prepaid electricity meters in Nigeria.
This was contained in a circular signed by the commission’s Chairman and Commissioner Legal, Licencing and compliance, Sanusi Garba and Dafe Akpeneye, respectively, noting that a single-phase prepaid meter would now cost N81,975.16k from the N58,661.69k while three-phase prepaid meter is increased to N143,836.10k from N109,684.36k.
The circular dated September 5, 2023, explained that the new price was to ensure a fair and reasonable pricing of meters to both MAPs and end-use customers.
“Ensure MAP’s ability to recover reasonable costs associated with meter procurement and maintenance while ensuring that their pricing structure allows for a viable return on investment.
“Evaluate the affordability of meter services for consumers, aiming to prevent excessive pricing that could burden end-users. Ensure that MAPs are able to provide meters to end-use customers in the prevailing economic realities.
The Abuja Electricity Distribution Company (AEDC) had on June 22, announced that there would be an upward review of the electricity tariff effective July 2023.
According to the company, the tariff increase, was influenced by the fluctuating exchange rate.
The statement added: “Effective July 1, 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate.
“Under the MYTO 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1 which will have an impact on the tariffs associated with your electricity consumption.”
The company also encouraged customers with prepaid meter to consider purchasing bulk energy units before the end of the month as this will allow them take advantage of the current rates and potentially make savings before the new tariffs come into effect.
“For customers, with a prepaid meter, we encourage you to consider purchasing bulk energy units before the end of this month as this will allow you take advantage of the current rates and potentially make savings before the new tariffs come into effect.
“For those on post-paid (estimated) billing, a significant increment is imminent in your monthly billing, starting from August,” it added.
NERC had announced that it was yet to give official approval to a projected 40 percent electricity tariff increment by the electricity distribution companies.
The NERC multi-year-tariff-order (MYTO) allows tariff review every six months while considering key variables like exchange rate, inflation and gas pricing, the regulator said it had not officially issued any directive on any tariff hike.