The Nigerian Electricity Regulatory Commission (NERC) is contemplating raising prepaid meter prices due to increased manufacturing costs, potentially allowing market forces to dictate costs.
NAIRAMETRICS
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 Nairametrics.
Nairametrics also 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.
