Emmanuel OchayiThe Nigerian Electricity Regulatory Commission (NERC) is contemplating another increase in the price of prepaid meters, signaling potential hardships for consumers already grappling with the soaring expenses of essential utilities.
Sources familiar with the situation disclosed to Nairametrics that the regulatory body is mulling over the necessity of adjusting meter prices in response to mounting production expenses faced by manufacturers.
Echoing concerns over the proposed hike, an industry insider, preferring anonymity, shed light on the prevailing predicament. “The cost of prepaid meters is going to go up soon,” the source stated, attributing the prospective escalation to the foreign exchange crisis wreaking havoc on the economy.
This revelation comes in the wake of manufacturers halting the issuance of invoices to Distribution Companies (DisCos), anticipating an imminent revision in prices mandated by NERC.
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In a bid to shed light on the severity of the situation, an official from a Distribution Company highlighted the consequential disruptions in meter provisioning processes. “New meter applications are not being processed until the price changes are reflected,” the official remarked, underscoring the uncertainty looming over prospective applicants.
Further complicating matters, customers lamented about the mounting delays in meter installations despite prior applications and payments made. The palpable frustration among consumers underscores the urgency for swift resolution and transparency in the pricing framework governing prepaid meters.
The incessant fluctuations in foreign exchange rates and the relentless surge in inflation have taken a toll on Nigeria’s manufacturing sector, driving capacity utilization to precarious levels.
According to the Manufacturers Association of Nigeria (MAN), the prevailing economic challenges are expected to persist until mid-2024, dampening prospects for a substantial rebound in manufacturing output.
Against the backdrop of a 27-year high inflation rate and a significant depreciation of the Naira, consumers brace themselves for the prospect of shelling out over N100,000 for a single-phase meter and possibly N150,000 for a three-phase prepaid meter.
As NERC contemplates the impending price adjustment, consumers remain apprehensive about the financial burden looming on the horizon.
