Nigerian Electricity Regulatory Commission (NERC) is considering another increase in the price of prepaid meters.
Gatekeepers News reports that the anticipated increase in prices is attributed to the foreign exchange crisis affecting the economy, leading to higher production costs and inflationary pressures on manufacturers.
Sources familiar with the matter revealed that manufacturers have halted issuing invoices to Distribution Companies (Discos) in anticipation of the price revision by NERC.
Last week, NERC fined 11 Distribution Companies (DisCos) nationwide to the sum of N10.5 billion for overcharging unmetered customers.
Meanwhile, new applications for meters are on hold, awaiting NERC’s announcement of a new pricing rate. Customers who had applied for meters weeks or months earlier are experiencing delays, while others who have paid for their meters are also facing delays in installation.
According to a source from a Distribution Company, the cost of prepaid meters is expected to rise soon, and new meter applications will only be processed once the new prices are announced by NERC.
Despite the challenges, customers who have already paid for their meters are assured of receiving them without additional costs, regardless of any new pricing adjustments.
The Manufacturers Association of Nigeria (MAN) has also reported challenges in the manufacturing sector due to forex-related issues and high inflation rates. The sector’s performance is expected to be limited until mid-2024, with average capacity utilization hovering around 50%.
In September 2023, NERC previously increased the price of prepaid meters, with a single-phase meter costing N81,975.16 and a three-phase meter priced at N143,836.10.
However, with the current inflation rate at 29.90% and the Naira losing over 40% of its value since the last evaluation, consumers may soon be paying over N100,000 for a single-phase meter and around N150,000 for a three-phase prepaid meter if the new price review is implemented.
