DisCos Raise Electricity Meter Prices by 28%, Spark Consumer Concerns

Electricity Distribution Companies (DisCos) across Nigeria have announced another increase in the prices of electricity meters, marking the second price hike in just four months. The new price adjustment, which took effect on Tuesday, November 5, 2024, reflects a 28.03% increase for various meter models. The announcement was made through the DisCos’ official social media pages on Wednesday, drawing mixed reactions from consumers already grappling with high energy costs.

According to the revised pricing, a single-phase meter, which previously cost about N117,000, now ranges up to N149,800—a jump of N32,800. The hike has been attributed to the ongoing deregulation of the Meter Asset Provider (MAP) scheme, as directed by the Nigerian Electricity Regulatory Commission (NERC). This policy shift, introduced in April, aims to encourage competition and improve service delivery by allowing meter prices to be determined through competitive bidding instead of a centralized structure.

Price Variations Across DisCos

The cost of electricity meters now varies based on the distribution company and meter models. Eko DisCo has set the price of single-phase meters between N135,987.50 and N161,035, while three-phase meters will range from N226,600 to N266,600. Ibadan DisCo customers will pay between N130,998 and N142,548 for a single-phase meter, and N226,556.25 to N232,008 for a three-phase meter. Abuja DisCo’s single-phase meters will range from N123,130.53 to N147,812.50, while three-phase meters will cost between N206,345.65 and N236,500.

Similarly, Kano Electricity Distribution Company customers can expect to pay N127,925 to N129,999 for a single-phase meter and between N223,793 and N235,425 for a three-phase meter. Kaduna DisCo announced a price range of N131,150 to N142,548.94 for single-phase meters and N220,375 to N232,008.04 for three-phase meters.

Customer Reactions and Industry Implications

The rising meter prices have caused widespread concern among electricity consumers, with many questioning the affordability and transparency of the process. The increase follows a similar hike in August 2024, further stretching household budgets. “The cost keeps going up, making it even harder for average Nigerians to access electricity meters. This is a big challenge for us,” said a Lagos resident.

DisCos have defended the price adjustment, citing the need for improved competition and better service quality through deregulation. “The shift to deregulated pricing aims to foster competition among meter providers and improve efficiency,” a representative from one of the DisCos explained.

NERC, in its latest order, emphasized that the deregulation move is designed to eliminate inefficiencies and promote greater transparency in the electricity sector. By removing the operational restrictions previously imposed on MAP permit holders, the policy hopes to create a more dynamic metering ecosystem. NERC anticipates that customers and DisCos alike will benefit from competitive pricing and improved service delivery.

Balancing Competition and Affordability

Previously, NERC regulated meter prices and often subsidized them to reduce costs for customers. However, this approach inadvertently limited competition and transparency, creating a bottleneck in the supply chain. “The deregulation will allow for more competitive bids, ultimately driving down prices in the long term,” an industry expert said. Still, many consumers remain skeptical, fearing that the short-term price hikes may outweigh any potential future benefits.

As the new pricing takes effect, both the government and industry stakeholders will closely monitor the impact on consumers and the market. For now, many Nigerians continue to hope for a solution that balances affordability with improved electricity access.