The Nigerian Electricity Regulatory Commission (NERC) yesterday increased the price of electricity metres in the country by almost 100 per cent.
Single- phase metre, which was selling for about N44, 896. 17 will now sell for N82, 855. 19 while the price of three- phase metre jumped from N58, 661. 69 to N109, 684. 36.
NERC in a memo dated 11- 11- 2021 noted that the changes were linked to recent changes in macroeconomic parametres.
The changes, according to the agency, affect the provisions of the Metre Asset Provider and National Mass Metering Regulations.
” 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.
” This price review is subject to change upon the conclusion of the procurement process under phase one of the National Mass Metering Programme. This price review is effective from November 15, 2021, ” NERC said.
Nigeria has about a five million metering gap. Without metering, electricity users are billed on the discretionary method of the distribution companies.
Currently, the Federal Government is funding the metering gap as part of the justification for the last review of electricity tariff. Expected to gulp about N120 billion, the process has been sluggish.
With the increase in the assets, the government may have to further increase the N120 billion intervention, while people who want to procure the asset to evade the bureaucratic process may need to double their fund.
Earlier this year, President Muhammadu Buhari said that Nigeria is working on an ambitious Energy Plan towards reducing the energy shortcomings by year 2030.
Mr Femi Adesina, the President’ s spokesman in a statement late Friday evening, said Buhari spoke in line with Nigeria’ s role as a Global Theme Champion for the Energy Transition, theme of the High- Level Dialogue on Energy on the sidelines of the 76th United Nations General Assembly in New York.
The president said: ” Nigeria’ s commitment to a just transition is reflected in our ambitious Energy Compact, which includes the Government’ s flagship project to electrify five million households and twenty million people using decentralized solar energy solutions.
” This is a major first step towards closing our energy access deficit by 2030.
” Nigeria’ s commitment is also reflected in the development of our Energy Transition Plan, which was developed with support of the UK COP26 Energy Transition Council. ”
The Nigerian leader called for support from developed countries to unlock the financing needed to accelerate a just energy transition for all.
” The focus of our discussions on transition must now evolve how we help countries develop detailed energy transition plans and commitments to mobilize enough financing to empower countries to implement those plans, ” he said.