DisCos Hit Pause on Meter Applications as Electricity Price Regularization Looms

DisCos suspends meter applications due to a plan to standardize power fee prices

Electricity distribution firms have temporarily blocked their meter application portals, according to Fermadec Group CEO Fola Akinola, as part of their attempts to bring meter rates into line with current economic reality.

Akinola said these things when Adebayo Adelabu, the Minister of Power, recently paid him a visit at his office in Lagos State's Lekki neighborhood.

The CEO emphasized that, in light of the volatile exchange rates, the current meter prices could not continue.

He underlined that the Nigerian Electricity Regulatory Commission, or NERC, must not set prices for prepaid meters. He pointed out that one important consideration in pricing should be the volatility of the exchange rate.

Many electricity consumers have recently faced difficulties accessing the meter application portals of their Distribution Companies, DisCos, resulting in continued reliance on estimated billing.

“The portals are closed because we want to regularise the price. The old price that we had is no longer sustainable.

“Before, the price used to be fixed, but now, each seller is going to give his or her price, depending on the type of meter. I think before the end of the month, the portals will be open, and people will have the opportunity to buy meters,” Akinola noted.

More specifically, he clarified that if the issues related to foreign exchange are successfully resolved, meter importers and producers are willing to work with the government to close the over 7 million meter gap.

"This has to do with foreign exchange. Once these foreign exchange issues are resolved, we will join the Federal Government in closing the metering gap by supplying meters with little margin on our cost.

“But in a situation where you fixed the price of meters when $1 was around N500, and now that $1 is over N1,300, you cannot sell the ones you have because you will not be able to replace them. People cannot bring in meters because of the exchange rate.

“But now, if I bring in my meter and sell it at a maximum margin, irrespective of whatever NERC says I should sell it, I will bring in more,” he remarked.

Akinola worried that only meter sales were being regulated, even as all others brought in their products and sold at a price that is comfortable to them.

“Very soon, the portals will be open, and people will start bidding for meters,” he assured Nigerians.