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Electricity Meter Costs Spike Again, Consumers Demand Accountability for NMMP Funds

Written by Agboola Oluwafemi on November 7, 2024

News Views: 289

Following a recent hike in meter prices across Nigeria’s electricity distribution companies, many power consumers have condemned the increase as exploitative amidst economic hardship. As announced, the price of a single-phase meter has surged from approximately N117,000 to N149,800—a 28% rise—and took effect on November 5, 2024.

The three-phase meter costs have also seen varying increases across different Discos, with prices adjusted to align with current deregulation policies under the Nigerian Electricity Regulatory Commission (NERC). This recent hike follows an earlier increase in August.

This deregulation, aimed at fostering competition, allows meter asset providers (MAPs) to price their products independently, which NERC anticipates will drive better service quality and cost efficiency. Despite the reforms, the price adjustments have caused concern.

Many customers feel burdened by the costs, particularly as Discos had previously received a N59bn loan from the National Mass Metering Programme (NMMP), out of which only N7bn has reportedly been repaid.

Electricity Consumers Protection and Advocacy Centre’s Executive Director, Princewill Okorie, sharply criticized the Discos for not fully accounting for the NMMP funds, saying, “What did they use the rest of the money for?” Okorie questioned the justification for additional meter costs, especially when many consumers already feel the impact of prior tariff increases intended to help Discos repay their loans.

The new MAP scheme also stipulates that meter prices will now be reviewed monthly, based on vendor bids, allowing Discos more flexibility in the competitive landscape. However, consumer advocates like Okorie argue that the continual price hikes are unfair, adding that Nigerian consumers “should not be bearing the cost of shortfalls already meant to be covered by the NMMP.”