Peter Uzoho
Meter Assets Providers (MAP) in the country have called for an increase in the price of prepaid electricity meters to enable them continue to carry on with their mandate of providing the device to electricity users.
MAPs hinged their call for the increase on the rise in various indices around meter manufacturing including inflation, foreign exchange and others, saying there was urgent need for all stakeholders in the electricity value chain to meet and address the issues at stake.
The MAPs made the call in a communique from their meeting held recently in Lagos and jointly signed by 17 of their member companies.
Currently, a three-phase electricity meter costs N82,855.19 while that of single-phase is N44.896.16.
The subsisting prices of prepaid meters came into effect on June 2020, as announced by the Nigerian Electricity Regulatory Commission (NERC).
The previous prices of prepaid meters were N36, 991 for single-phase and N67,055 for three-phase.
The MAP scheme was created in 2018, by the Federal Ministry of Power under the supervision of the then Minister, Mr. Babatunde Fashola as a third party body to work with the Distribution Companies (Discos) to ensure effective metering of customers of their assigned Discos.
Currently, two separate metering programmes are in place namely, the MAP scheme and the National Mass Metering Programme (NMMP), which are running concurrently with the joint purpose of closing the huge metering gap in the country’s electricity sector.
Furthermore, the MAPs said that there was need to review the price of meters in accordance with the current market fundamentals, adding that when those market fundamentals come down, the meter prices will follow adjust likewise.
According to the communique, “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.”
The MAPs demanded that the Central Bank of Nigeria (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.
They also called for the removal of bottlenecks in the Customs Clearing Process, saying the Nigerian Customs Services (NCS) 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.
However, the Convener of the meeting and Chief Executive Officer of Integrated Resources Limited, Mr. Durosola Omogbenigun, told THISDAY that the “MAP and NMMP, have come a long way because of many stakeholders, especially, CBN, Office of the Vice President, NERC and the various Discos.
“Indeed, we are grateful to the CBN for funding NMMP, Office of the Vice President for its coordination efforts, NERC for believing in the coexistence of MAP and NMMP, and the Discos for patronage, while expecting the tackling of the various issues and problems.”
