NERC to increase prepaid metre prices again amid naira-dollar fluctuations

The Nigerian Electricity Regulatory Commission (NERC) is reportedly considering raising the already adjusted metre costs due to escalating production expenses for manufacturers.

According to sources familiar with the situation, NERC is contemplating a significant shift by potentially deregulating metre pricing, allowing manufacturers to independently set their prices rather than maintaining current regulatory controls.

The majority of customers in Nigeria are being billed based on estimations rather than actual usage, which can be monitored by prepaid metres.

These sources, preferring to remain anonymous, also indicated that metre manufacturers have ceased issuing invoices to electricity distribution companies (DisCos) in anticipation of NERC's decision, suggesting anticipation of a substantial upward price review.

Furthermore, manufacturers face increased costs from currency fluctuations and inflationary pressures, which complicate efforts to sustain current prices.

Meanwhile, a representative from a DisCo mentioned that new meter applications are currently on hold, citing expectations of NERC announcing revised pricing soon.

The source added that applications will resume processing only after the new pricing structure is disclosed, leaving numerous applicants without access to prepaid meters in the interim.

He said: “The cost of prepaid meters is going to go up soon. Meter Asset Providers have stopped selling new meters as they await NERC to approve new prices.

“New meter applications are not being processed until the price changes are reflected. So due to FX issues, the meter manufacturers have stopped sending invoices until the meter price is reviewed.”

The NERC has sanctioned the pricing of prepaid metres, many of which are brought into the country as semi-knocked-down units and assembled domestically for deployment.

Also, prepaid metres have undergone advancements, with DisCos integrating functionalities to prevent energy theft and offer more detailed consumption data.

Nigeria currently faces a metre deficit exceeding 7 million units, resulting in most customers being billed based on estimations rather than actual usage.