Nigeria's electricity regulator stops setting metre prices amid tariff increment

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May 1, 2024
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2 min read
Prepaid meters in Nigeria
  • The Nigerian Electricity Regulatory Commission (NERC) has announced the deregulation of metre prices under the metre asset provider (MAP) scheme, following an increase in electricity metre prices in September 2023. 
  • According to the commission, the prices of metres under the MAP scheme will be determined through a competitive bidding process, with customers able to choose from authorised vendors beginning May 1. This means that the government will no longer control smart metre prices in the country.
  • The commission also stated that the review is based on the need for efficient metre pricing that responds more quickly to changes in macroeconomic parameters, particularly exchange rates. 

“All MAP permit holders are, henceforth, eligible to provide services and transact for the provision of metres and metering services with any DisCo in the Federal Republic of Nigeria with their existing permit. 

“The lifting of the restriction on permitting to operate in all DisCos is subject to the mandatory requirement for MAPS to comply with the associated DisCo specific requirements/specifications,” NERC shared.

With this development, DisCos will ensure that MAP-deployed smart metres are seamlessly and effectively integrated with their head-end systems and metre data management systems.

Furthermore, all DisCos will provide a publicly accessible online portal on their website where prospective MAPs can view DisCo's technical specifications and commercial terms for participating as a MAP in its network area. 

In September 2023, the NERC approved a price increase for single-phase electricity metres to ₦81,975.16, and three-phase metres to ₦143,836.10. 

In April 2024, NERC announced a significant increase in electricity tariffs for customers in the Band A category to ₦225 per kilowatt-hour (kWh), a 240% increase from the initial ₦68.

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) responded outrageously, citing potential economic consequences. 

Meanwhile, on April 30, 2024, the House of Representatives directed the Nigerian Electricity Regulatory Commission (NERC) to suspend the recently announced tariff increase. 

It called for the suspension of other conditions in the newly issued review of the Multi-Year Tariff Order, as well as the formation of a special committee comprised of the Committees on Power, Commerce, Delegated Legislation, and National Planning to organise a well-structured hearing on price regulation in the Nigerian Electricity Supply Industry (NESI).

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According to NERC, Nigeria has 5,885,687 prepaid metre users out of a total of 13,231,807 registered electricity customers and as of January 2024, all 12 electricity distribution companies in the country collectively metreed only 42,961 customers, accounting for only 1.54% of total registered customers.


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