The Nigerian Electricity Regulatory Commission (NERC) has said that the customers who already paid for meters before the prices were increased should be supplied without additional costs.
The Commission stated this via its LinkedIn account on Wednesday, September 13.
The Commission wrote:
- “The order on the review of unit cost of end-use meters under the Meter Asset Provider (MAP) and National Mass Metering Programme (NMMP) Regulations was effective since 6 September 2023. MAPs are to supply meters to all customers who had paid previously for meters before the effective date at the prevailing rate without additional increase in cost.”
The Commission also provided a reason why it reviewed meter prices upwards earlier this month. According to NERC, the country’s foreign exchange rate is a major reason for the price review.
The Commission said that most components that make up the meter are imported, and the foreign exchange rate affects their cost. So, with the dollar rate on the rise, NERC approved the review of meter prices to keep them accessible.
The Commission also wrote:
- “NERC approved the review of meter prices to reflect the forex adjustment reality to avoid scarcity of meters in our commitment towards putting an end to estimated billing methodology.”
According to the details outlined in the directive dated September 6 and seen by NewsTimes, there is a revised cost structure for meter purchases under the Meter Asset Provider (MAP) program, excluding Value Added Tax (VAT). The new pricing is as follows:
- Single-phase meters, which previously cost N58,661.69, will now be priced at N81,975.16.
- Three-phase meters, formerly priced at N109,684.36, will now be available for N143,836.10.
It is crucial to emphasize that the price adjustment carried out by the Nigerian Electricity Regulatory Commission (NERC) is grounded in the authority vested by Section 226 of the Electricity Act 2023 and Section 8(1) of the MAP & NMMP 2021.
These legal provisions empower the Commission to establish regulations and endorse the pricing of both single-phase and three-phase meters issued by MAPs, encompassing all associated costs and warranties.
Keeping ROI in view
The NERC directive is also aimed at establishing equitable and just pricing for meters, benefiting both Meter Asset Providers (MAPs) and end-users.
It intends to safeguard MAPs’ capacity to recuperate reasonable expenses linked to meter procurement and upkeep, all while ensuring that their pricing framework facilitates a sustainable return on investment (ROI).
Moreover, it involves a thorough assessment of the affordability of meter services for consumers, with the goal of averting any unwarranted pricing that might place a heavy burden on end-users.
The overarching objective is to ensure that MAPs remain capable of supplying meters to end-use customers, even amid prevailing economic conditions.