Exchange Rate: NERC set to increase price of prepaid meters

The Nigerian Electricity Regulatory Commission (NERC) is considering increasing the price of prepaid meters once again.

This consideration comes in response to the escalating production costs faced by meter manufacturers, according to sources familiar with the matter who spoke to the press.

Pointblanknews.com gathered that the regulator may even go further than price increase and just allow market forces to determine the cost of meters. Currently, meter prices are determined by the regulator.

Consideration for price increase

These sources, who requested anonymity, revealed that manufacturers have ceased issuing invoices to Distribution Companies (Discos), in anticipation of an upward price revision by the NERC.

According to the sources, the increase in prices is directly related to the foreign exchange crisis affecting the economy, leading to increased production costs and inflationary pressures on manufacturers.

Earlier last week, NERC accused the 11 Distribution Companies (DisCos) nationwide of overcharging unmetered customers, resulting in a fine of N10.5 billion.

Meanwhile, an official from a Distribution Company informed that new applications for meters are no longer being processed, as there are indications that NERC will soon announce a new pricing rate.

The source also mentioned that the applications can only be processed once the new prices are announced, leaving many applicants without a prepaid meter.

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.