Less than two weeks after the Federal Government began the implementation of the 7.5 per cent Value Added Tax (VAT), the cost of pre-paid meters and other service charges have gone up, it was learnt at the weekend.

It was gathered that many of the electricity distribution companies (DisCos) have marginally increased the cost of pre-paid meters by between N1,300 and N2,000.

This means electricity consumers are not going to buy the meters at the market prices offered by meter asset providers (MAPs) as planned.

Already, electricity consumers are worried over Federal Government’s approval to raise tariffs on electricity in April.

For instance, Port Harcourt Electricity Distribution Company (PHEDC), which sells meters at N36,991, has increased the product by N2,774, which means that consumers would now buy the meter at N39,655.

The company said customers, who want to buy three-phase meter would buy it at N70,408 from N67,056, signifying an additional cost of N1,667.

Also, Ibadan Electricity Distribution Company(IBEDC), which used to sell a single-phase meter at N38,325, now sells it for N39,237.50 (7.5 per cent inclusive). For its phase-three meter, the firm has announced that it would be selling it to customers at N72,025, indicating a rise by N1,900.

Abuja Electricity Distribution Company (AEDC) has increased the price of its single-phase meter and three-phase meter by N924 and N1,667.

Others, including Eko Electricity Distribution Company(EKEDC) and Ikeja Electric, have notified their customers of their decision to spread the impact of the new VAT on the meters.

The Executive Director, Research & Association of Nigerian Electricity Distributors (ANED) Mr Sunday Oduntan, corroborated this assertion, saying that the firms were collecting money for the government and must, therefore, comply with any policy or directive by the Federal Government.

Efforts to speak to the Enugu Electricity Distribution Company(EEDC) Spokesman, Mr Emeka Eze, on the issue proved abortive, as neither the calls nor text message put to him, was replied.

Book On Banking regulation In Africa: The Case Of Nigeria And Other Developing Economies

written by Dr Folashade Adeyemo, lecturer at the University of Reading, UK. This book contributes to the ongoing discourse and calls to improve the banking regulatory regime in Africa.

To Order: This book may will be released 29 December 2021 and can be purchased on Routledge, Amazon or Blackwells. Dr Adeyemo may be contacted at F.Adeyemo@reading.ac.uk