*The Nigerian Electricity Regulatory Commission explains the Federal Government approved an upward review in the prices of prepayment electricity meters with effect from September 6, 2023, due to macroeconomic indicators, including inflation and Foreign Exchange in the country’s economy

Isola Moses | 绿帽献妻

Citing apparent factors of聽 macroeconomic indicators, including inflation, Foreign Exchange (Forex), the Nigerian Electricity Regulatory Commission (NERC) Tuesday, September 6, 2023, announced that the Federal Government had approved an upward review in the prices of prepayment electricity meters in the country.

绿帽献妻 reports the Commission, in a circular jointly signed by the Chairman, Sanusi Garba, and Commissioner, Legal, Licencing and Compliance, Dafe Akpeneye, stated the latest approval for rate increments would take effect Tuesday.

Some brands of prepayment electricity meters聽

The circular indicated the price of the single-phase meter (4G, smart) would increase to N81,975.16 from N58,661.6, while the price of a Three-phase meter (4G, smart) was jacked up from N109,684.36 to N143,836.10.

The regulatory Commission also attributed the price increments to significant changes in macroeconomic indicators, such as inflation and changes in the foreign exchange rates, have necessitated a review of the regulated rates for Meter Asset Provider (MAP).

NERC stated it also considered relevant data on the significant changes in macroeconomic indicators from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) as benchmarks for the meter price review in the economy.

The recent approval seeks to ensure the fair and reasonable pricing of meters to both MAPs and electricity consumers, it said.

The Commission further said the approval was to 鈥渆nsure MAP鈥檚 ability to recover reasonable costs associated with meter procurement and maintenance while ensuring that their pricing structure allows for a viable return on investment鈥� and 鈥渆valuate the affordability of meter services for consumers, aiming to prevent excessive pricing that could burden end-users. Ensure that MAPs are able to provide meters to end-use customers in the prevailing economic realities.”

According to NERC, the approval meter prices, however, are exclusive of Value Added Tax (VAT).

It disclosed the approved meter prices also include the revised Nigerian Electricity Management Services Agency (NEMSA) sealing cost.

The electricity sector regulator stated: “Single-phase meter NGN 842.80 per unit and Three-phase meter NGN 1,100.80 per unit.”

The Commission urged all MAPs to adjust their prices to reflect the approval rates.

It said: “All MAPs shall supply meters previously paid for by end-use customers prior to the commencement of this order at the prevailing rate when payment was made by the customers without additional increase in cost.

鈥淎ll DisCos and MAPs are to develop/implement customer enlightenment campaigns on the price review along with a schedule on the implementation of their meter rollout plans.

鈥淎ll MAPs shall continue to file monthly sales and meter installation returns with the commission.”