The Guardian
By Dan Agbese
The bad news is that our national economy remains stubbornly defiant. Past and present efforts to solve its inherent historical problems
A price increase of about 30 per cent announced lately on electricity meters countrywide is not the best thing that can happen to the power sector which is already characterised by inefficiency in distribution, extortion through unjustified billings, and pronounced customer dissatisfaction marked by failure of the metering mandate by the Distribution Companies (DISCOS).
The increase can only deepen the apprehension of subscribers, increase their economic yoke and widen the gulf between customers and service providers.
Clearly, the Nigerian Electricity Regulatory Commission (NERC) that announced the price hike gave no consideration for the negative effects on the average Nigerian struggling pathetically with inflation, high cost of living and very little or no wage arising from unemployment.
Before now, the euphoria that greeted the launch of the National Mass Metering Programme (NMMP) had dampened following the snail speed of the programme, which has barely touched the surface of the problem, one year later. The price increase has created further disillusionment and confusion among Nigerians, given the government’s pronouncement earlier that the metering process would be free; a declaration that some of the DisCos have debunked and interpreted to mean that the cost will be borne by subscribers and payment spread over a period. While subscribers have taken that assertion with equanimity, it is rather annoying that even before the meters are supplied, the cost has gone up; and there is still no certainty about when the meters will be supplied or installed. The entire arrangement is turning out to be a big hoax.
The introduction of electricity metering was supposed to bring relief to consumers who have borne the brunt of excessive charges by the distribution companies (DisCos), but the emerging trend seems to prove otherwise. Although NERC said that meters purchased under NMMP were exempted from the hike, Nigerians have reason to be apprehensive of the new price increase given that the NMMP has not made any appreciable impact since it was launched in December 2020, with the support of the Central Bank of Nigeria (CBN).
According to NERC, Nigerians are to pay more for electricity meters with effect from November 15, 2021. Consequently, under the new dispensation, a single-phase meter will move from N44, 896.17 to N58, 662.69 representing a 30.6 per cent increase. Similarly, the cost of a three-phase meter will be N109, 684.36 from the present N82.855.19 or an increase of 32.3 per cent. All the costs are exclusive of Value Added Tax (VAT), the NERC said on November 11, 2021, made public.
In the circular signed by the commission’s chairman, Sanusi Garba, entitled ‘‘Review of the unit price of end-user meters under the Meter Asset Provider and National Mass Metering Regulations,” the NERC said the price review was based on…
