Seventeen manufacturers of electricity meters in the country,Monday,advocated the need for upward review of the cost of the product due to the prevailing inflation and foreign exchange rates and other biting economic variables in Nigeria.
The Meter Asset Providers conveyed this position to the Nigerian Electricity Regulatory Commission at a meeting in Lagos.
They said in a communique that:“There should be 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.
They added:“These factors lead to a global increase in the prices of raw materials and components for the manufacture of prepaid meters.”
They said that there would be corresponding downward review of meter prices when there was a downward movement in foreign exchange rates and other cost factors.
They implored the Central Bank of Nigeria to guarantee access to foreign exchange to local meter manufacturers and assemblers for the procurement of parts and accessories, including equipment for meter manufacturing/production as well as expansion of factory infrastructure.
They called on the Nigerian Customs Service 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.
They emphasized the need for a change in the modalities for the implementation of the presidential waiver of the 35 per cent levy on fully built prepaid meters and that the timeframe for the waiver should be extended to December 2022.
They advised the 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,they said, will facilitate the utilisation of available local materials to increase local input in the deployment of meters and reduce foreign currency requirements.
They 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.
“The power sector suffers from a huge metering gap; closing the metering gap will improve revenue collection, transparency, and payment discipline, and improve customer satisfaction in the power industry. MAPs acknowledge and commend 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 appreciate intervention efforts of the Nigerian Electricity Regulatory Commission (NERC), the Central Bank of Nigeria 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,” they added.
