By Teddy Nwanunobi
Rising from the Meter Asset Providers (MAPs) meeting, 17 manufacturers of electricity meters, operating in the Nigerian Electricity Supply Industry (NESI), have demanded for “an upward review of the current price of prepaid meter”.
The manufacturers, however, noted that there would be a corresponding downward review of meter prices when there is a downward movement in foreign exchange rates and other cost factors.
They also urged the Central Bank of Nigeria (CBN) to guarantee them access to foreign exchange for the procurement of parts and accessories – Completely Knocked Down (CKD) or Semi Knocked Down (SKD) parts, including equipment for meter manufacturing/production, as well as expansion of factory infrastructure.
Stating that the power sector is suffering from a huge metering gap, MAPs noted that closing the metering gap will improve revenue collection, transparency, and payment discipline, and improve customer satisfaction in the power industry.
MAPs acknowledged and commended the President Muhammadu Buhari-led administration for the various interventions to close the metering gap, such as the Meter Asset Provider (MAP) regulations, and the implementation of the National Mass Metering Programme (NMMP).
Furthermore, MAPs appreciated the intervention efforts of the Nigerian Electricity Regulatory Commission (NERC), the CBN, the Federal Ministry of Power, Federal Ministry of Finance, Budget and National Planning, Federal Ministry of Industry, Trade and Investment, and the co-ordination activities of the Office of the Vice President for their roles in moving the metering sector forward.
“The MAP meeting discussed the challenges and bottlenecks that have continued to affect the full achievement of set targets to close the metering gap since the implementation of the MAP and NMMP.
Key challenges discussed include fixed meter pricing in a regime of depreciating foreign exchange rates, unavailability of foreign exchange from CBN, Customs clearing bottlenecks, implementation of the 35 per cent levy waiver granted by the President on fully built prepaid meters and improvements to the industry structure for accelerated prepaid meter deployment.
MAPs also noted the disruptions in global supply chain resulting from the COVID-19 pandemic, with an attendant increase in international prices of raw materials and components required in the manufacture and assembly of prepaid meters,” MAPs said in a communiqué.
The communiqué read out the key resolutions of MAPs from the above deliberations.
“The meeting resolved amongst others as follows:
“Price Review: An upward review of the current price of prepaid meter by NERC in view of rising inflation, continued upward movement of foreign exchange rates, associated increases in customs costs, increase in container freight costs, and the disruptions in the international supply chain, leading to a global increase in the prices of raw materials and components for the manufacture of prepaid meters.
MAPs, however, note that there will be a corresponding downward review of meter prices when there is a downward movement in foreign exchange rates and other cost factors.
“Foreign Exchange Availability: The CBN should guarantee access to foreign exchange to Local Meter Manufacturers and Assemblers for the procurement of parts and accessories (Completely Knocked Down (CKD) or Semi Knocked Down (SKD) parts) including equipment for meter manufacturing/production as well as expansion of factory infrastructure.
“Removal of bottlenecks in the Customs Clearing Process: The Nigerian Customs Services (Customs) should be encouraged to create dedicated desks/teams at the various ports to fast track the clearing of prepaid meters and components from the ports to improve on delivery timelines. Further, it is crucial that Fed Min of Finance and Customs harmonise and provide clarity on HS codes for uniform assessment as relates to meters, meters parts, components and accessories.
“Change in the modalities for the implementation of the presidential waiver of the 35 per cent levy on fully built prepaid meters and extension up to December 2022.
The list of all NERC approved MAPs benefitting from the levy waiver should be made available by NERC/FMF to the Customs to circulate to their commands, thus removing the requirement from MAPs to individually apply to NERC each time.
“The timeframe for presidential waiver should be further extended to December 2022.
“Combined Implementation of MAP and NMMP Programmes: The MAP scheme is critical to the closing of the metering gap and should operate alongside the implementation of the NMMP.
MAPs are crucial to the attainment of the mass metering roll-out having invested, built, and trained critical manpower and logistics for installation and management of prepaid meters.
“Nigerian Electricity Management Services Agency (NEMSA) should drive a review of material requirements for the production of meter and metering components and accessories such as meter boxes, relays, etc. This will facilitate the utilisation of available local materials to increase local input in the deployment of meters and reduce foreign currency requirements.
“Combined Stakeholders’ Meeting: That NERC should urgently convene a roundtable meeting of all stakeholders in the metering sector consisting of the Federal Ministry of Power, Office of the Vice President, CBN, Federal Ministry of Finance, Budget and National Planning, Federal Ministry of Industry, Trade and Investment, Customs, NEMSA, DisCos and MAP/Meter Manufacturers & Assemblers to engage on the key issues and above recommendations,” it read.
MAPs members that were present at the meeting were: MEMMCOL (Momas), MOJEC International Limited, Protogy Global Services Ltd, UNISTAR Hi-Tech Ltd, Integrated Resources Ltd, Conlog Metering Nigeria Limited, and New Hampshire Capital Limited.
Others were: Holley Metering Limited, Tinuten Nigeria Ltd, Gospell Digital Technology Ltd, Integrated Power Ltd, Cresthill Engineering Ltd, Bendoriks International, and CWG Plc.
Those on apologies were: Electrometer NG, Meron Nigeria Ltd, and ARMESE Consulting Ltd.