New Price Hike for Electricity Meters Sparks Concerns as Nigeria Deregulates Meter Providers

Electricity Distribution Companies (DisCos) across Nigeria have announced a fresh price increase for various electricity meter models, marking the second such adjustment in the past four months. The recent hike, which took effect on Tuesday, November 5, 2024, reflects ongoing shifts in Nigeria’s metering system due to recent regulatory changes.

According to the DisCos, the price of a single-phase meter has climbed from around N117,000 to as high as N149,800—an increase of 28.03% or N32,800, depending on the specific distribution company and meter provider. The latest rates were shared on the DisCos’ official X (formerly Twitter) accounts, showcasing variations in pricing across regions and vendors.

Breakdown of New Meter Prices Across Distribution Zones

Documents show varying prices for single-phase and three-phase meters across different DisCos, influenced by vendor partnerships and specific meter models. For example:

Eko DisCo now charges between N135,987.5 and N161,035 for a single-phase meter and N226,600 to N266,600 for a three-phase meter.
Ibadan DisCo prices range from N130,998 to N142,548 for single-phase and N226,556.25 to N232,008 for three-phase meters.
Abuja DisCo sets rates between N123,130.53 and N147,812.5 for single-phase meters and N206,345.65 to N236,500 for three-phase meters.
Kano DisCo lists single-phase meters at N127,925 to N129,999 and three-phase meters at N223,793 to N235,425.

Deregulation of Meter Asset Providers and Its Impact

This increase in meter prices comes alongside the Nigerian Electricity Regulatory Commission’s (NERC) recent deregulation of Meter Asset Providers (MAPs). Previously, NERC’s centralized pricing structure aimed to keep meter costs low through subsidies across all DisCos, helping to make metering more affordable for customers. However, this model inadvertently reduced competition and transparency in the supply chain.

With deregulation, meter pricing will now be determined by competitive bidding, enabling DisCos and customers to explore more flexible deals with various providers. The changes also remove past operational restrictions, allowing MAPs to serve customers across any of Nigeria’s distribution companies, provided they meet NERC’s regulatory standards.

Expected Outcomes: Competition and Service Quality

The deregulated approach is anticipated to foster a more competitive environment, with MAPs striving to deliver better pricing, increased service quality, and greater accountability. This shift aims to address the inefficiencies that previously plagued the centralized system by encouraging a dynamic ecosystem for metering services.

However, consumers have expressed growing concerns over the affordability and accessibility of these meters following the recent price hikes. With two increases in just four months, many are questioning how these changes will affect the broader goal of widespread and fair access to metered electricity. NERC and the DisCos have yet to clarify how they will address these concerns in the coming months.