In response to Nigeria’s current deregulation of the Meter Asset Providers (MAP) scheme, Electricity Distribution Companies (DisCos) have announced a second hike in meter prices in just four months.
This development comes as the Nigerian Electricity Regulatory Commission (NERC) changed pricing control to competitive bidding, thereby aiming to increase transparency and efficiency in the sector.
Beginning November 5, 2024, the cost of single-phase meters has jumped from an average of N117,000 to as much as N149,800, depending on the DisCo and meter vendor.
This upward revision impacts Nigerian electricity consumers, who are struggling with the growing cost of accessing metering services amidst inflationary pressures.
Breakdown of New Meter Prices Across DisCos
An overview of the latest prices reveals varied charges based on location and vendor, showing the diverse operational aspects and competition levels across the country:
- Eko DisCo: Single-phase meters range from N135,987.5 to N161,035, while three-phase meters are priced between N226,600 and N266,600.
- Ibadan DisCo: Single-phase meters cost between N130,998 and N142,548, with three-phase meters at N226,556.25 to N232,008.04.
- Abuja DisCo: Single-phase meters are priced from N123,130.53 to N147,812.5, and three-phase meters between N206,345.65 and N236,500.
- Kano Electricity: Single-phase meters range from N127,925 to N129,999.75, while three-phase meters cost between N223,793 and N235,425.
- Kaduna DisCo: The cost of single-phase meters varies between N131,150 and N142,548.94, with three-phase meters at N220,375 to N232,008.04.
Deregulation and the Changing Meter Market
Earlier in April, NERC announced a change in policy by deregulating the meter prices under the MAP scheme. Previously, NERC controlled meter prices across DisCos to reduce customer costs, but the centralised approach inadvertently hindered competition and transparency within the supply chain.
NERC’s revised order now allows MAP permit holders to operate and price meters competitively, with the intention of enabling a healthier market that benefits both consumers and DisCos through improved pricing and service delivery.
Under the new model, DisCos and customers are encouraged to engage with multiple vendors, creating an open market where competitive bids determine meter prices.
This flexibility also enables MAP providers to expand their services across Nigeria, provided they meet compliance and quality requirements set by NERC.
However, some industry stakeholders warn that deregulation could make meters less affordable for the average Nigerian, as competitive pricing might not immediately translate to lower costs in a period of rising inflation.
Implications for Nigerian Consumers
With prices reaching over N140,000 for single-phase meters in some regions, affordability has become a focal issue, especially as electricity access and cost remain critical for many Nigerians.
The adjustment in meter prices adds another layer to household expenses, making access to metered electricity increasingly challenging for lower-income households.
NERC has asserted that this policy is designed to boost the sector by enhancing competition among MAPs, which should theoretically lead to long-term benefits, such as better service quality and increased transparency.
However, the short-term impact reveals further stress on consumers already facing high energy tariffs and rising costs of living.
