The Nigerian Electricity Regulatory Commission (NERC) has approved the increase in the price of prepaid meters. This was notified to the public by the commission’s chairperson on Monday.
The price increase comes on account of the current devaluation of the Naira against the Dollar, and the steady increase in manufacturing costs, directly affecting the profitability of the business.
According to our sources, besides the price increase, the Nigerian Electricity Regulatory Commission (NERC) is also considering allowing the market to determine the price of the meters instead of being regulated by the commission.
Currently, manufacturing companies have paused production and issuing of invoices to the Distribution Companies. The Distribution Companies have paused the registration of new applicants for the prepaid meters pending the update on the new prices and direction of the NERC.
However, complaints are mounting up from customers all over the country who have applied for the prepaid meters for weeks and some for months, and are yet to be processed and given the meters. Including others who have paid for the meters and are yet to receive it.
The question aired by those who have paid for the prepaid meters and are yet to receive them is if the price increase will mean that they will have to add more to what they have paid. Well, the NERC is making it clear that those who have already paid will receive their prepaid meters without additional fees.
All fingers point to the recent constant devaluation of the Naira against the Dollar and the inflation in the country as it is expected to limit the performance of the electricity sector to provide the necessary devices for prepaid usage.
The Prepaid Meter Price Expectation
Earlier on, when the inflation rate was at 26.72% and the dollar to Naira valuation was at $1/₦800, the price of a single-phase prepaid meter was ₦81,975.16. While the price of a three-phase meter was at ₦143,836.10.
Now, the Naira has lost over 42% of its value and going down rapidly with the exchange rate stationed at $1/₦1,812. The market awaits the new price direction for the prepaid meters by the NERC as speculations suggest an increase to ₦120,000 for a single-phase meter and ₦170,000 for a three-phase meter.