Electricity Meter Prices Soar by 28.03% for Second Time in Four Months, Fueling Consumer Concerns

In a second price hike within just four months, Nigeria’s Electricity Distribution Companies (DisCos) have raised prices on various electricity meter models, drawing frustration and concern among consumers. As of Tuesday, November 5, 2024, a single-phase meter now costs up to N149,800, an increase of N32,800 or 28.03% over previous prices. The price adjustment follows regulatory changes from the Nigerian Electricity Regulatory Commission (NERC) aimed at deregulating the metering market.

DisCos shared the updated prices on their official social media platforms, highlighting differences across regions and vendors. Eko DisCo, for example, set single-phase meter prices between N135,987.5 and N161,035, while a three-phase meter costs between N226,600 and N266,600. Ibadan DisCo’s single-phase meters now range from N130,998 to N142,548, with three-phase models priced between N226,556.25 and N232,008. Similar hikes are noted across other DisCos, including Abuja, Kano, and Kaduna.

This price adjustment follows an initial hike in August 2024, deepening concerns about affordability as inflation and economic pressures already weigh heavily on consumers. The NERC’s recent deregulation under the Meter Asset Provider (MAP) scheme is designed to open the market to competitive pricing, hoping to resolve longstanding issues with meter availability and pricing transparency. With deregulation, MAP providers can now operate across all DisCo regions, fostering competition and allowing prices to be set by market forces.

NERC’s April decision to deregulate meter pricing signaled a policy shift away from a centralized, subsidized pricing model, which, while intended to keep costs low for consumers, limited market transparency and competitive options. Under the new rules, MAP providers now set prices through competitive bidding, but they must still adhere to NERC standards for quality and compliance.

This latest price increase underscores the challenges in Nigeria’s power sector, where consumers, faced with high electricity bills and meter costs, are pressing for more affordable metering solutions. NERC aims for the deregulated model to encourage quality service, better accountability among meter providers, and ultimately more choice for consumers. However, as meter prices continue to climb, stakeholders are closely watching for improvements in service delivery and transparency in the metering ecosystem.