Electricity: Meter price hits N250,000 as many strive to exit estimated billing

Electricity: Meter price hits N250,000 as many strive to exit estimated billing

The Nigerian Electricity Regulatory Commission’s (NERC) move to deregulate Meter Asset Providers (MAP) was hailed 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 promising policy to deregulate both 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.

While this policy appeared commendable on paper, it has brought new challenges.

The most pressing of these is the increase in meter prices, exacerbated by the prevailing economic conditions and rising inflation.

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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.

Latest Meter Prices

Following the announcement by NERC, DisCos and their meter providers partners have declared new meter prices, pointing to the deregulation policy and ailing economic conditions.

None of the new prices is below N100,000, a very sharp increase from the former price announced by NERC in September 2023.

According to the new prices by DisCos, the cost of a single phase meter rose from N81,975 to about N125,000, depending on the DisCo and the vendor the customer is purchasing from.

Different DisCos announced different prices from N120,00 for a single-phase meter to about N240,00 for a three-phase meter, a sharp increase that has made struggling Nigerians question their choices in obtaining meter and estimated billing.

Abuja DisCo:  

Single Phase Meter — Between N105,000 to  N131,000

Three Phase Meter — N198,000 to N220,000

Kaduna DisCo: 

Single Phase Meter — Between N120,000 to N132,000

Three Phase Meter — Between N206,000 to N215,000

Ikeja DisCo: 

Single Phase Meter — Between N120,000 to N125,000

Three Phase Meter — N213,000 to N225,000

Eko DisCo: 

Single Phase Meter — Between N117,000 to N135,000

Three Phase Meter — Between 145,000 to N247,000

This increase in price is true for all the eleven DisCos across the country.

Electricity: Meter price hits N250,000 as many strive to exit estimated billing