The federal government through the Nigerian Electricity Regulatory Commission (NERC) has increased the prices of both single-phase and three-phase meters with effective date of Monday, 15th November, 2021 by 30.66 per cent and 32.38 per cent respectively.
The increase was announced in a circular dated November 11, 2021, issued by the NERC and addressed to managing directors, all electricity distribution companies and all meter asset providers.
In the document, the price of a single-phase meter increased from the current cost of N44,896.17 to a revised price of N58,661.69.
The price of a three-phase meter rose from the current cost of N82,855.19 to a revised cost of N109,684.36.
This implies that Nigerians will pay N13,765.52 and N26,829.17 extra to get the 11 Discos to provide them with the single phase and three-phase meters respectively.
The commission also stated that the new prices were exclusive of Value Added Tax (VAT).
When the mandatory VAT is calculated on the new prices, a single meter phase will have an extra N4,400 included to sell at N63,061.69, while a three-phase meter will have additional N8,227 for VAT to sell for N117,911.36.
In April 2020, a single-phase meter sold for N39,991.50, while a three-phase meter went for N67,055.85. However, in June 2020, the single-phase meter rose to N44,896.17, while the three-phase meter sold for N82,855.19.
The NERC memo stated, “Pursuant to the provisions of the Meter Asset Provider and National Mass Metering Regulations, the Nigeria Electricity Regulatory Commission (NERC) notes the recent changes in macro-economic parameters and hereby approve an upward review of unit price of meters. Note that all costs are exclusive of Value Added Tax (VAT).
“In arriving at the approved unit price, the commission had, in particular only considered changes in foreign exchange and inflation since the last review of June 2020.
“This price review is subject to change upon the conclusion of the procurement process under Phase 1 of the National Mass Metering Programme. This price review is effective from 15th November 2021.”
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
