Power consumers rail at price hike amid economic hardship
By Jeph Ajobaju, Chief Copy Editor
Power consumers have protested against the 40 per cent hike in the price of pre-paid meters which took immediate on September 6, as announced in a statement jointly signed by Nigerian Electricity Regulatory Commission (NERC) Chairman Sanusi Garba and Legal, Licencing and Compliance Commissioner Dafe Akpeneye.
The power consumer body urged the government to consider the plight of Nigerians and reverse the increase.
“They [government] have [been] about this since the unification of the foreign exchange rates, but we warned against it due to the plight being faced by Nigerians currently,” lamented Nigeria Electricity Consumer Advocacy Network (NECAN) National Secretary Uket Obonga.
He blamed the price rise on pressure from Meter Asset Providers (MAPs) on the government, having threatened to pull out from supplying meters if the cost remained the same.
Obonga said consumers are already grappling with excessive rises in the prices of different energy products, including petrol and diesel.
The NERC announced the price of single-phase meter has risen from N58,661.69 to N81,975.16 and of a three-phase meter from N109,684.36 to N143,836.10.
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‘Fair and reasonable’ pricing
The regulator explained the hikes would ensure a fair and reasonable pricing of meters to both MAPs and end-use customers, per reporting by The PUNCH.
They would ensure the ability of MAPs to recover the costs of procurement and maintenance, it added, and as well a viable return on investment.
The NERC pitched the hikes would help “evaluate 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.”
It said the closure of the metering gap for end-use customers is fundamental to the financial sustainability of the Nigeria Electricity Supply Industry (NESI) as end-use meters provide revenue assurance to both the utility and their end-use customers.
“The Meter Asset Provider scheme is one of the four frameworks in the regulations for the provision of meters to end-use customers in NESI.
“Section 8(1)(c) of the regulations provides that the costs of single-phase and three-phase meters issued by MAPs, inclusive of all other associated costs of installation and warranties shall be at the regulated rates approved by the commission.
“The commission notes that significant changes in macroeconomic indicators, such as inflation and changes in the foreign exchange rates have necessitated a review of the regulated rates for MAP meters.”
Impact of macroeconomic data
The NERC disclosed
- It considered 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.
- The new prices include the cost of meter installation and warranties, and shall remain at the rates approved by the NERC.
- Approved meter prices exclude Value Added Tax (VAT) but include Nigerian Electricity Management Services Agency (EMSA) sealing cost.
- The sealing cost for a single-phase meter is N842.80 per unit, and for a three-phase meter N1,100.80 per unit.
“All MAPs shall adjust their prices to reflect the approved rates. 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.
“All 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.
“All MAPs shall continue to file monthly sales and meter installation returns with the commission.”