Thursday, 21 November, 2024

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Asset Providers Increase Meter Prices For DisCos


Meter Asset Providers (MAP) have increased the prices of prepaid electricity meters, marking the second price increase in barely four months.

This revision follows an earlier price increase in August 2024, deepening concerns among electricity users regarding the growing cost and availability of meters.

Under current prices, the cost of a single-phase meter has risen from approximately N117,000 to N149,800, depending on the distribution company and meter vendor.

This new pricing structure, which took effect on Tuesday, November 5, 2024, aligns with the deregulation of the MAP as mandated by the Nigerian Electricity Regulatory Commission (NERC).

The updated prices vary across the different DisCos, influenced by factors such as the meter type (single-phase vs. three-phase) and the vendors involved.

Eko DisCo: Single Phase Meter: N135,987.5 to N161,035. Three Phase Meter: N226,600 to N266,600.

Ibadan DisCo: Single Phase Meter: from  N130,998 to N142,548 while three Phase Meter increased from N226,556.25 to N232,008.04.

For Abuja DisCo, a Single Phase Meter which sold for N123,130.53 has been raised to N147,812.5 while the three Phase Meter previously N206,345.65 would now sell for N236,500.

Kano Electricity: Single Phase Meter: N127,925 to N129,999.75. Three Phase Meter: N223,793 to N235,425.

Kaduna DisCo: Single Phase Meter: N131,150 to N142,548.94. Three Phase Meter: N220,375 to N232,008.04.

LEADERSHIP reports that the NERC has deregulated prices of meters which allows meter providers to bid every two months in line with new regulations.

According to NERC’s latest order, meter prices under the MAP scheme will now be determined through competitive bidding rather than being centrally regulated.

This shift is expected to foster greater competition among meter providers, ultimately improving cost efficiency and service delivery for end-users.

In addition, the deregulation removes earlier operational restrictions, allowing MAP permit holders to provide metering services across all Electricity Distribution Companies (DisCos) in Nigeria. However, MAPs must meet specific regulatory requirements to ensure compliance and maintain quality standards in service delivery.

Previously, NERC regulated meter prices, which were often subsidised across all DisCos to reduce costs for customers. While this model aimed to make metering affordable, it inadvertently stifled competition and limited transparency in the supply chain.

As a result, DisCos and customers were unable to negotiate or explore better deals from meter vendors, contributing to inefficiencies in the system.

The general manager, Corporate Communications and Strategy of Eko Electricity Distribution Company, Babatunde Lasaki, told our Correspondent that the DisCos uses four MAPs whose prices differ and the customer is entitled to choose from among them based on his choice.

Lasaki confirmed that the latest bidding was carried out on Tuesday and that DisCos no longer controls the pricing of meters.

With deregulation now in place, NERC anticipates a more dynamic metering ecosystem where customers and DisCos can benefit from competitive pricing, improved service quality, and greater accountability among meter providers.

This upward revision follows an earlier increase in August 2024, further amplifying concerns among electricity consumers about affordability and accessibility.

Lasaki further explained that meter prices vary across DisCos, influenced by vendors and meter models (single-phase and three-phase).

Credit: Leadership

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