…implementation commences today
…Discos silent on availability, warns customers against payment for equipment and repairs
By Safiriyu Babatunde
With the recent upward review, the Federal Government has now increased the prices of electricity meters by 61% in 18months, Standard Times reports.
The Nigerian Electricity Regulatory Commission (NERC) through a circular with reference number NERC/REG/MAP/GEN/751/2, entitled ‘Review of the unit price of end-use meters under the Meter Asset Provider and National Mass Metering Regulations’, signed by its chairman, Sanusi Garba and addressed to managing directors, all electricity distribution companies and meter asset providers, announced that it had raised the cost of a single Phase Meter from N44, 896.17 to N58,662.69,while a Three Phase Meter was reviewed from N82.855.19 to N109, 684.36.These costs, the document noted are exclusive of Value Added Tax (VAT).
This is coming barely 18 months after the new rates, which came into effect on the 1st of June 2020.Then, the cost of a single Phase Meter was raised from N36, 991.50 to N44, 896.17,while a three phase meter, from 67,055.85 to N82, 855.19.
In a similar manner, the commission had stated: “Pursuant to the provisions of section 19(d) of the Meter Asset Provider Regulations (MAP) allowing for the indexing of the unit cost of meters to changes in macroeconomic parameters, the Nigerian Electricity Regulatory Commission (NERC) has approved an upward review of the unit cost of MAP meters.
Hence, within the period, a single phase meter was increased by 58.58% while a three phase meter was raised by 63.57%. On average, it was an upward review of 61.08 per cent.
Of course, the NERC stated that it based the approval of the recent upward review on the “the recent changes in the macro-economic parameters.”
“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”, it explained.
Significantly, implementation commences today(15th November 2021), as contained in the circular.
However, indications have emerged that the NERC will exempt all meters bought under the National Mass Metering Program (NMMP) from the upward review, leaving the burden on those purchased under the MAP arrangement alone. This is even as availability and intervention capacity poses constraints on achieving government’s aim of providing free meters to the masses.
The Meter Asset Provider policy had come into force in 2018 as an interventionist programme to allow third parties close the metering gap for electricity consumers. However, it had been overtaken by the Federal Government’s mass metering programme which seeks to provide meters free for unmetered electricity consumers and enhance a credible electricity market.
The Special Adviser to the President on Infrastructure, Mr Ahmed Zakari, had in 2020, even hinted on the possibility of electricity customers recovering their payments for the meters under MAP.
He said then, “We have made it clear through the regulator’s direct order as well as the intervention from the Ministry of Power that these meters are to be provided to Nigerians at no cost.
“Even for meters that will be paid for through the MAP, there is a directive from the regulator to the discos that they need to find a way to reimburse citizens over time”.
The possibility of this happening is however in doubt as we have seen over the years. Similarly, a source in the distribution chain told this newspaper that the Discos were reluctant to distribute meters due to the high level of energy theft, adding that the meter monitoring team couldn’t do much, as they can’t be in every household to check their meters.
The Electricity distribution companies have however remained silent on this development. A text message sent to the spokesperson of Eko Electricity Distribution Company (EKEDC), Mr. Godwin Idemudia, on the availability of electricity meters wasn’t replied as of the time of filing this report.
He, however responded to the one sent on the issue of electricity customers paying for repairs and equipment. This is against the backdrop of reports from Ayanre community in Agbara business unit, alleging billing to the tune of N1.3million, with residents levied N3000 each to have the three fallen electric poles in their area fixed.
His response read in part, ‘This is absolutely not true. We do not tolerate such in our company. Please do a thorough investigation from your source. We have done our internal investigation based on this same allegation and found it not to be true.
We have serious disciplinary action against any of our staff if found to be involved in such heinous act”, he added.
While the NERC has assured of a possible review in the future, electricity customers have continued to lament the ugly situations witnessed in the power sector.
Hence, while the commission noted that the price review is subject to change upon the conclusion of the procurement process under phase 1 of the National Mass Metering Program, a concerned citizen, Mordi Onochie Christopher, for instance, in his reaction to the development as cited on the ICIR page submitted; “NERC have not live up to expectations. The officials have been in constant romans with Distribution Companies.
A vast majority of customer have not been metred but pay exorbitantly because distribution companies find such arrangement most comfortable.
Example is my town, Ubulu-uku, in Aniocha South LGA. Each building pay the sum of Three Thousand Naira (N3,000) monthly. By the arrangement, electricity supply is supposed to comes on between 7pm-11pm. Despite the fact that this arrangement fail most of the days with a particular month, the N3,000 is sacrosanct else the compound will be cut off. Benin Electricity Company also expect the final consumers to provide poles and pay for repairs of broken down transformer. Anybody, who cares can investigate.
EDDC have stop the distribution of prepaid metres and only give out post-paid. Meanwhile, before post-paid metres are installed, on official request, crazy bills are mounted on innocent subscribers.
Personnel of Nigeria Electricity Regulating Company (NERC) are fully aware of this evil by Distribution Companies but choose to stay aloof and profit from this short change.
It is my candid and sincere opinion that NERC urgently needs to be overhauled in order to live up to expectations.”
Indeed, we can only look forward to seeing the Minister of Power, Mr. Abubakar Aliyu, keep to his words as contained in his address recently.
According to him, “We are working tirelessly as we explore opportunities that will, in the short term, deliver the much-desired quick wins whilst still focusing on the long-term objectives of increasing the available power, improving the quality of services, attracting the much-needed investment, promoting efficiency, competition and growth and lastly ensuring transparency and accountability in the value chain of the Power Sector”.
