NERC increases cost of electricity metres by almost 100%

The Nigerian Electricity Regulatory Commission (NERC) yesterday increased the price of electricity metres in the country by almost 100 per cent.

Single-phase metre, which was selling for about N44,896.17 will now sell for N82,855.19 while the price of three-phase metre jumped from N58,661.69 to N109,684.36.

NERC in a memo dated 11-11-2021 noted that the changes were linked to recent changes in macroeconomic parametres.

The changes, according to the agency, affect the provisions of the Metre Asset Provider and National Mass Metering Regulations.

“In arriving at the approved unit price, the Commission had, in particular, only considered changes in foreign exchange and inflation since the last review of June 2020.

“This price review is subject to change upon the conclusion of the procurement process under phase one of the National Mass Metering Programme. This price review is effective from November 15, 2021,” NERC said.

Nigeria has about a five million metering gap. Without metering, electricity users are billed on the discretionary method of the distribution companies.

Currently, the Federal Government is funding the metering gap as part of the justification for the last review of electricity tariff. Expected to gulp about N120 billion, the process has been sluggish.

With the increase in the assets, the government may have to further increase the N120 billion intervention, while people who want to procure the asset to evade the bureaucratic process may need to double their fund.