NIGERIA’S foreign exchange and inflation have combined to push the prices of prepaid meters year-on-year, YoY by 80 percent to N147, 610.43 (Single phase) in February 2024, from N81, 975 in the corresponding period of 2023. Similarly, the price of the double phase meter also surged YoY by 80 per cent to N259, 002.43 in February 2024, from N143, 836.10 in the corresponding period of 2023.
This is even as the Abuja Electricity Distribution Company, AEDC, has issued a notice of disconnection of power supply to the Presidential Villa, also referred to as Aso Rock and Federal Government’s Ministries, Department and Agencies over a N47 billion their indebtedness.
However, checks by Vanguard, weekend, indicated Meter Service Providers (MSP) and Meter Asset Providers (MAP) have not been able to produce or import to replenish depleted stocks. It indicated that many customers, who paid for meters have not been supplied and installed, thus increasing the population of those under estimated billing in Nigeria. In apparent response to the situation, the federal government has liberalised the metering market, meaning that the Nigerian Electricity Regulatory Commission, NERC, would no longer peg or fix meter prices in Nigeria.
Rather, prices of meters would be determined by market forces, including foreign exchange and inflation, targeted at ensuring that commercial stocks are produced, supplied and installed for consumers.
A source in the Federal Ministry of Power, who confirmed the Liberalization of Metering Services, weekend, said: “NERC is currently working on the modalities, targeted at efficient operations.
This involves removing price controls while maintaining regulatory guidelines to safeguard consumer interests and ensure fair competition. By eliminating metering price control, a competitive meter market can be fostered, attracting private sector investments, stimulating innovation, and creating job opportunities.”
AEDC plans to disconnect Presidential villa, others over N47bn debt
Meanwhile, the Abuja Electricity Distribution Company, AEDC, has issued a notice of disconnection of power supply to the Presidential Villa, also referred to as Aso Rock and Federal Government’s Ministries, Department and Agencies over a N47 billion their indebtedness.
According to the company, which has franchise area covers the Federal Capital Territory, Niger, Kogi and Nasarawa States, the government agencies and offices involved owe N47, 195,620,266.06 while the Presidential Villa, with six meters, has a debt of N923, 873,150. Also, the Chief of Defence Staff, covering barracks and military formations under him, has the highest debt of N12,001,481,606 while the Ministry of the Federal Capital Territory, follows with N7,573,120,732.
AlsoThe Ministry of Finance has N5, 432,741,321 as its debt, while the Liaison Office of the Niger State Government in Abuja owes N3, 448,373,803. In its Notice of Disconnection, AEDC Management urged Aso Rock Villa and the other debtors to settle their debts within 10 days.
Expert react However, reacting to the development in an interview with Vanguard, the National Secretary, Nigeria Electricity Consumer Advocacy Network, Uket Obonga, said: “The issues raised are very correct and convincing. Operators cannot continue to provide the meters because forex exchange crisis and inflation. But it may not be affordable to the very poor households and other customers.”
