Electricity Shock: Discos Hike Meter Prices Sparking Consumer Backlash

Electricity Shock: Discos Hike Meter Prices Sparking Consumer Backlash

Power distribution companies in Nigeria have announced a second price increase for prepaid electricity meters in four months, raising the cost by 28%. This recent hike has sparked outrage among power consumers, who describe the increase as “unjust,” especially in the face of ongoing economic challenges…CONTINUE READING…

The new pricing structure raises the cost of a single-phase meter from approximately N117,000 to N149,800, a difference of N32,800, depending on the distribution company and the meter vendor. Announced on the Discos’ official social media pages, the new prices took effect on November 5, 2024, reflecting recent regulatory changes by the Nigerian Electricity Regulatory Commission (NERC) aimed at deregulating meter pricing and enhancing competition among Meter Asset Providers (MAPs).

This policy shift intends to address the issues of supply and pricing transparency by allowing MAPs to set prices through competitive bidding rather than fixed pricing, which, under NERC’s previous regulations, was subsidized. Now, MAPs are required to meet regulatory standards for service delivery across all distribution areas.

Pricing varies across different regions. For example, Eko Disco lists single-phase meters between N135,987.5 and N161,035, while Ibadan Disco’s prices range from N130,998 to N142,548. Abuja Disco offers single-phase meters from N123,130.53 to N147,812.5. Three-phase meters are generally more expensive, with costs influenced by vendor and meter type.

In April, MAPs suspended meter sales, claiming the NERC-approved prices fell below production costs. After a negotiation period, NERC approved an upward revision in May, aligning meter prices with current economic conditions and foreign exchange rates.

However, consumers are still expressing frustration. Princewill Okorie, Executive Director of the Electricity Consumers Protection and Advocacy Centre, condemned the price hike, questioning the use of the N59 billion already allocated to the Discos as part of the National Mass Metering Programme. He argued that consumers should not bear the cost of the meters while also covering loan repayments tied to the programme, accusing the Discos of mismanaging funds and exploiting customers.

Okorie criticized the price disparity for single- and three-phase meters compared to other countries, noting that the Discos should account for the remaining N141 billion allocated to the metering programme. He also questioned the impact of the exchange rate on the Discos’ failure to repay loans, calling for greater accountability and transparency in the industry.