High import duty on meters is hampering effort to provide electricity meters for consumers, electricity Distribution Companies (DisCos) have lamented.
The companies have therefore, urged the Federal Government to remove the 35 percent duty on imported electricity meters to enable them meet the 2021 targets of metering all consumers in the sector.
The firms fear that the challenges will make it impossible to meet the 2021 target of the Meter Asset Providers (MAP) regulation.
The DisCos in a statement through the Association of Nigerian Electricity Distributors (ANED) on Sunday, called on the Federal Government to intervene in finding a means to cut the Duty on imported meters, to enable faster metering for the DisCos’ customers towards ending the estimated billing regime.
The Executive Director, Research and Advocacy at ANED, Barrister Sunday Oduntan, who issued the statement explained that some of the MAP companies have the capacity to install about 3,000 meters per day for the DisCos if the meters are available.
“These are separate companies but DisCos support Meter Assets Providers (MAP) and we want them to succeed,” Oduntan said.
He added: “There should be zero percent import duty on meters. We must assist local meter manufacturers to bring in components duty-free until Ajaokuta Steel Company is ready. The high import duty at the ports is killing the power sector.
“When Customers are metered, they would be happy. Estimated billing is not good for the DisCos revenue collection drive. While those importing meters are finding it hard because of the import duty, the local meter manufacturers are also finding it difficult to continue production because they have to pay import duty on at least seven different components which they import for use in producing the meters in Nigeria.”
The DisCos’ group said the power firms cannot be blamed for the current slow process of providing meters for their customers as that role was alienated to the MAP companies since the Nigerian Electricity Regulatory Commission (NERC) implemented the MAP regulation in 2019 and gave permits to metering firms to provide and install the meters for DisCos.
The DisCos also said with the current import duty and other challenges facing the implementation of MAP, the NERC order that DisCos should provide meters for all electricity consumers by 2021 may not be realistic.
“On the part of the Federal Government, what has it done to ensure that the meters are available for them to be installed for the customers of the DisCos? There is an urgent need for the Government to intervene so that there will be more meters available to be installed.”
ANED also said the Nigerian Electricity Management Services Agency (NEMSA) which tests and certifies meters for the DisCos, recently confirmed that although the DisCos were to present 1.023 million meters for testing in the first phase of MAP scheme which began in May 2019. However, only 273,000 meters have been tested and certified by NEMSA due to the hiccups the MAP firms are facing in the importation of meters.
