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Nigerian DisCos Raise Meter Prices by 28%, Second Hike in Four Months Amid Deregulation Shift

Ademola Damilola by Ademola Damilola
November 6, 2024
in In the News, News
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Nigerian DisCos Raise Meter Prices by 28%, Second Hike in Four Months Amid Deregulation Shift
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Electricity Distribution Companies (DisCos) in Nigeria have announced a 28.03% increase in the price of electricity meters, the second such hike in just four months. This adjustment follows a recent directive by the Nigerian Electricity Regulatory Commission (NERC) to deregulate meter pricing under the Meter Asset Provider (MAP) scheme, allowing prices to be set through competitive bidding.

According to the DisCos, the cost of a single-phase meter has risen from around N117,000 to as high as N149,800, representing an increase of N32,800. New prices were posted on the DisCos’ official X (formerly Twitter) accounts and took effect on Tuesday, November 5, 2024.

Meter costs now vary by DisCo and vendor. Eko DisCo has set its single-phase meter prices between N135,987.5 and N161,035, with three-phase meters priced from N226,600 to N266,600. Similarly, Ibadan DisCo prices single-phase meters between N130,998 and N142,548, while three-phase meters range from N226,556.25 to N232,008.

Under Abuja DisCo, customers will pay between N123,130.53 and N147,812.5 for single-phase meters, while three-phase meters range from N206,345.65 to N236,500. Kano DisCo has set its single-phase meters between N127,925 and N129,999, and three-phase meters from N223,793 to N235,425. Lastly, Kaduna DisCo charges between N131,150 and N142,548.94 for single-phase meters and N220,375 to N232,008.04 for three-phase meters.

The price hikes reflect NERC’s new approach to meter pricing. Deregulation of the MAP scheme aims to foster competition, enhance service quality, and boost accountability by allowing MAP permit holders to operate across multiple DisCos, provided they meet regulatory standards.

Prior to deregulation, NERC controlled meter prices and provided subsidies to standardize costs across DisCos. While this kept prices lower, it limited competitive options for DisCos and consumers. Now, NERC anticipates that competitive bidding will encourage efficiency, transparency, and better service delivery within the electricity sector.

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