- Adelabu seeks extra budget to curb grid collapse
- FG blames grid failures on DisCos’ limited capacity
Electricity Distribution Companies in Nigeria have announced a rise in the price for various electricity meter models, marking the second price hike in four months.
According to the DisCos, the cost of a single-phase meter has risen from approximately N117, 000 to as much as N149, 800.
This amount indicates an increase of 28.03 per cent or N32, 800, depending on the distribution company and meter vendor.
The new prices posted on the official X handle of the discos on Wednesday were scheduled to take effect on Tuesday, November 5, 2024.
It also reflects the deregulation of meter asset providers as directed by the Nigerian Electricity Regulatory Commission.
This upward revision follows an earlier increase in August 2024, further amplifying concerns among electricity consumers about affordability and accessibility.
An analysis of the documents revealed that meter prices vary across DisCos, influenced by vendors and meter models (single-phase and three-phase).
Eko DisCo pegged the price of its Single Phase Metre between N135, 987.5 and N161, 035, while a Three Phase Meter was pegged between N226, 600 and N266, 600.
Ibadan DisCo said customers will pay between a range of N130, 998 and N142, 548 for a single-phase meter and N226, 556.25–NN232, 008 for a three-phase meter.
Customers under Abuja DisCo will pay N123, 130.53–NN147, 812.5 for single-phase meters and N206, 345.65–NN236, 500 three-phase meters.
Kano Electricity Distribution said its customers will pay N127, 925–N129, 999 for a single-phase meter and N223, 793–NN235, 425 for a three-phase meter.
Lastly, Kaduna DisCo said N131, 150—N142, 548.94 would be paid for single-phase meters and N220, 375—N232, 008.04 three-phase meters.
In April, the Nigerian Electricity Regulatory Commission introduced a significant policy shift by announcing the deregulation of meter prices under the Metre Asset Provider scheme for end-user customers.
This move aims to address lingering issues surrounding meter supply and pricing transparency within the electricity sector.
According to NERC’s latest order, meter prices under the MAP scheme will now be determined through competitive bidding rather than being centralised.
This shift is expected to foster greater competition among meter providers, ultimately improving cost efficiency and service delivery for end users.
Additionally, the deregulation removes earlier operational restrictions, allowing MAP permit holders to provide metering services across all electricity distribution companies in Nigeria.
However, MAPs must meet specific regulatory requirements to ensure compliance and maintain quality standards in service delivery.
Previously, NERC regulated meter prices, which were often subsidised across all DisCos to reduce costs for customers.
While this model aimed to make metering affordable, it inadvertently stifled competition and limited transparency in the supply chain.
As a result, DisCos and customers were unable to negotiate or explore better deals from meter vendors, contributing to inefficiencies in the system.
With deregulation now in place, NERC anticipates a more dynamic metering ecosystem where customers and DisCos can benefit from competitive pricing, improved service quality, and greater accountability among meter providers.
Adelabu seeks supplementary budget to curb grid collapse
Meanwhile, the Minister of Power, Adebayo Adelabu, said all the recommendations necessary for curbing incessant grid collapse have financial implications that he would include in the 2024 Supplementary Budget and the 2025 Appropriation Bill.
Responding after receiving a report on the resolution of incessant grid collapse from a six-man committee in Abuja, he said alongside the heads of agencies and departments in the ministry, he would look into the recommendations to add a general agreement on the final solution.
Adelabu added that he would present an amended report to aid his submission to Tinubu owing to the financial implications.
“Out of this. So there will be an amended report after this meeting, which will help me to submit to Mr. President.
“Because all these have financial implications, and it must be recognized for inclusion in the 2025 budget.
“We will not wait until then for it to start implementation. Whatever we can actually cover within our 2025 budget now, and even if it is possible, a supplementary budget. Because it is a national issue, and must be addressed,” Adelabu said.
The minister blamed the incessant grid collapse in the Nigerian Electricity Supply Industry on vandalization of electricity and aging infrastructure.
He also said the lack of maintenance in the past is responsible for the frequent grid collapse.
He said although it is not his desire that the grid collapses frequently, it is commendable that the Transmission Company of Nigeria technical team always responds swiftly to restore power within 24 hours.
According to him, “But once we have it despite the age of the system, lack of maintenance in the past, and a number of other external factors responsible for this grid collapse, major of which is vandalization, which is responsible for majority of the incidences which we have noticed this year: health of power equipment, vandalization of power equipment.
“In spite of this, you have responded swiftly to ensure that none of the grid collapse actually lasted more than 24 hours.
“What we desire is that we should arrest the situation and that it should not happen at all. And that is why we are here.”
Presenting the report, the committee chairman, Nafisat Ali informed the minister that the Jebba Hydro power plant was commissioned in 1968.
Ali, who is also the Independent System Operator, Executive Director, urged the Federal Government to in the short term of one month review relaying philosophy and setting, particularly at critical nodes.
She said the committee also recommended that the government enhance the capacity development for Maintenance and System Operator staff.
The committee, according to her, also recommended the testing of existing equipment at the critical nodes to establish reliability.
FG blames grid failures on DisCos’ limited capacity
In the same vein, the Federal Government through the National Orientation Agency, has attributed frequent national grid collapses and resulting blackouts to the inability of electricity distribution companies to absorb available power.
In a document titled “Why National Grid Collapses,” released on Wednesday, NOA explained that while Nigeria’s power generation capacity stands at about 13,000 MW and the transmission capacity at around 8,000 MW, DisCos are only able to distribute about 4,000 MW.
This infrastructure limitation causes load rejections, which contribute to grid instability and eventual collapse.
Last month, for example, DisCos allegedly rejected 1,400 MW of the 5,313 MW generated, putting strain on the system.
NOA stated “Transmission Company of Nigeria (TCN) has an installed wheeling capacity of more than 8,100 MW, thanks to upgrades from the Siemens project and TCN’s internal projects.
“Additionally, the Zungeru hydroelectric plant’s recent 700 MW output has boosted national generation to about 13,610 MW.”
The NOA also addressed the DisCos’ ongoing financial challenges, emphasizing that cost-recovery issues limit their investment in infrastructure.
This lack of investment hampers the ability to expand distribution capacity and maintain a stable system.
The agency stated that the Federal Government is implementing steps, including recent electricity rate revisions, to improve DisCos’ financial viability and boost sector investment.
The NOA statement emphasised the government’s commitment to resolving long-standing infrastructure and budgetary difficulties in the power industry.
