Nigerian Government has said the cost of single-phase and three-phase electricity meters beginning from November 15, 2021.
The increase was announced in a circular dated November 11, 2021, issued by the Nigerian Electricity Regulatory Commission and addressed to managing directors, all electricity distribution companies and all meter asset providers.
The circular, with reference number NERC/REG/MAP/GEN/751/2, was entitled ‘Review of the unit price of end-use meters under the Meter Asset Provider and National Mass Metering Regulations’.
In the document, the regulator raised the price of a single-phase meter from the current cost of N44,896.17 to a revised price of N58,661.69.
It also increased the price of a three-phase meter from the current cost of N82,855.19 to a revised rate of N109,684.36.
However, it is not known if the increase in cost will be passed to the consumers as meters are being provided for the electricity consumes under the national mass metering programme (NMMP).
The NMMP is an initiative of the federal government and electricity distribution companies (DisCos), working in collaboration with local meter manufacturers, to provide smart prepaid meters to all unmetered customers.
Under the initiative, the federal government is making funds available for provision of free meters to consumers through loans from the Central Bank of Nigeria (CBN) to DisCos.
The Nigerian Electricity Regulatory Commission (NERC) said over 1 million customers have been metered by DisCos under the Meter Asset Provider (MAP) scheme and NMMP.
The Federal Government said 750, 000 free meters were provided to electricity consumers under the first phase of the programme which kicked off in December 2020.
Government said four million meters will be provided under the second phase of the programme.
“This phase will provide up to 4 million meters and shall also use a similar financing mechanism as phase 0. One of the key successes of the NMMP initiative is how rapidly it has increased private sector interest in investing in the local meter assembly, manufacturing and installation space.
“In addition to the springing up of new factories such as the Quantum meter assembly plant in Lagos and the Smart Meter assembly plant in Kaduna, We are also seeing the refurbishment and upgrade of some metering plants that had also fallen into disrepair such as EMCON in Kaduna.”
But producers of meters under the programme under the Meters Assets Providers, MAPs had on June 2021 petitioned the Federal Government to ask for increase in the price of meters after their meeting in Lagos.
The meter producers asked for the increase citing as reasons, unavailability of foreign exchange and disruptions in the global supply chain resulting from the COVID-19 pandemic, with an attendant increase in international prices of raw materials and components required in the manufacture and assembly of prepaid meters as the major constraints affecting the realization of set targets.
In a communiqué issued at the end of their meeting, June 17, 2021, obtained by Energy Vanguard, MAPs, stated: “An upward review of the current price of prepaid meter by NERC in view of rising inflation, continued upward movement of foreign exchange rates, associated increases in customs costs, increase in container freight costs, and the disruptions in the international supply chain, leading to a global increase in the prices of raw materials and components for the manufacture of prepaid meters. MAPs, however, note that there will be a corresponding downward review of meter prices when there is a downward movement in foreign exchange rates and other cost factors.”
‘’The CBN should guarantee access to foreign exchange to Local Meter Manufacturers and Assemblers for the procurement of parts and accessories (Completely Knocked Down (CKD) or Semi Knocked Down (SKD) parts) including equipment for meter manufacturing/production as well as expansion of factory infrastructure.”
The increase is unarguably a response to the demand of the meter producers.