From Monday, Nigerians will pay N13,766 and N26,829 more to get the 11 power Distribution Companies (DisCos) to provide them with single phase and three-phase meters, according to an order approving this by the Nigerian Electricity Regulatory Commission (NERC).
According to a letter addressed to the Managing Directors of the DisCos by NERC on 11th November 2021 (Thursday), a single phase meter has risen by N13,766 per unit from N44,896.17 to N58,661.69 while a three phase meter will now sell for N109,684.36 which is N26,829 increase from the current N82,855.19.
However, these costs are not with the 7.5 percent Value Added Tax (VAT) which the DisCos will include at the point of sale.
Daily Trust reports that with the 7.5% VAT, a single meter will now have N4,400 as VAT to sell at N63,061.69 while a three phase meter will have additional N8,227 for VAT to sell for N117,911.36.
The N18,166 and N35,227 – plus Valued Added Tax (VAT) increases in the prices of the meters are coming ahead of the Phase 1 of the federal government’s National Mass Metering Programme (NMMP) and the Meter Assets Provider (MAP), another existing metering scheme.
Justifying the increase, the power regulator said: “Pursuant to the provisions of the MAP and NMM Regulation, NERC noted the recent changes in macro-economic parameters and hereby approves an upward review of unit price of meters.”
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NERC in the letter signed by the Chairman, Engr. Sanusi Garba, said the Commission arrived at the approved unit price by considering the rise in the foreign exchange (forex) and inflation rate since the last review in June 2020.
“The price review is subject to change upon the conclusion of the procurement process under phase 1 of the NMMP. This price review is effective from 15th November 2021,” the regulator added.
Electricity consumers faced multiple increases in the prices of meters in June 2020 when NERC hiked the price by about 14%. While the meter price increased due to the new 7.5% VAT, it further increased in July following forex challenges.
According to the pricing template in April 2020, a single phase meter sold for N39,991.50 while a three phase meter went for N67,055.85. However, with the pricing template of NERC in June 2020, the single phase meter rose to N44,896.17 while the three phase meter sold for N82,855.19.
Analysis shows that the single phase meter rose by N449 which is 11%, the three-phase meter rose by N829 (18%).
The 11 DisCos then included the 7.5% VAT and as at today, a single phase meter goes for N48,263 while three phase is N89,069. (Daily Trust)