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The Nigerian Electricity Regulatory Commission's (NERC) decision to deregulate Meter Asset Providers (MAP) was celebrated as the much-needed solution to the country's persistent metering gap crisis.
However, this silver bullet has come with a price, and not just figuratively.
The soaring cost of prepaid meters has added a new layer of burden for the average Nigerian household, making the dream of escaping the trap of estimated billing feel like an increasingly distant hope.
For millions of Nigerians, the sharp rise in metering costs from about N80,000 to over N200,000 in just one year has become as burdensome as the problem it was meant to solve: eliminating estimated billing.
Four months ago, NERC introduced a policy to deregulate meter prices and providers, embracing a willing-buyer, willing-seller system aimed at opening up the market.
This move was intended to empower customers, allowing them to obtain meters from any approved vendor without relying on the DisCos.
However, this policy has brought new challenges, primarily the increase in meter prices, exacerbated by the prevailing economic conditions and rising inflation.
According to the National Bureau of Statistics, the number of customers on estimated billing has surged from 5.83 million in Q4 2023 to 6.43 million in Q1 2024, marking a significant 10% rise.
These figures represent millions of households striving to escape the cycle of overbilling and other abuses by their distribution companies, only to find that the path to obtaining a prepaid meter has become even more difficult.
Following the announcement by NERC, DisCos and their meter providers partners have declared new meter prices, citing the deregulation policy and economic challenges.
The new prices are all above N100,000, a significant increase from the previous price announced by NERC in September 2023.
According to the new prices by DisCos, the cost of a single phase meter has risen from N81,975 to around N125,000, depending on the DisCo and the vendor the customer is purchasing from.
Different DisCos have announced varying prices, from N120,000 for a single-phase meter to about N240,000 for a three-phase meter, a sharp increase that has left struggling Nigerians questioning their options for obtaining meters and avoiding estimated billing.
The average prices announced by distribution companies across the country are as follows.
Abuja DisCo:
Single Phase Meter — Between N105,000 and N131,000
Three Phase Meter — N198,000 to N220,000
Kaduna DisCo:
Single Phase Meter — Between N120,000 and N132,000
Three Phase Meter — Between N206,000 and N215,000
Ikeja DisCo:
Single Phase Meter — Between N120,000 and N125,000
Three Phase Meter — N213,000 to N225,000
Eko DisCo:
Single Phase Meter — Between N117,000 and N135,000
Three Phase Meter — Between 145,000 and N247,000
This increase in price is true for all the eleven DisCos across the country.
