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HomeTrade and IndustryElectricity firms task Nigeria on duty for meters

Electricity firms task Nigeria on duty for meters

By Chris Ndibe

The Electricity Distribution Companies (DISCOs) have urged Nigerian government to intervene on heavy import duties for meters to mitigate delays in import clearance at ports.

They  said there was need for the federal government to assist them to find a better leverage that would accelerate  clearing of meters at the Nigerian ports, to enable the DISCOs quickly install meters for their electricity customers.

DISCOs, who decried the high import duty and other hurdles,  slowing down the firms’ metering target advanced by the Meter Asset Providers (MAP) regulation, made the plea in a statement signed by  Mr Sunday Oduntan, the Executive Director, Research and Advocacy of Association of Nigerian Electricity Distributors (ANED).

Oduntan said some of the meter providers have the capacity to install about 3,000 meters per day for DISCOs if the meters were available.

“There should be zero per cent import duty on meters.

“We must assist local meter manufacturers to bring in components duty-free until Ajaokuta is ready.

“The high import duty at the ports is killing the Power Sector.

“When customers are metered, they will  be happy because estimated billing is not good for the DISCOs.

“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.

“This is because they have to pay import duty on at least seven different components which they import for use in producing the meters in Nigeria.

“These are separate companies but DISCOs support Meter Assets Providers (MAPs) and we want them to succeed,” Oduntan said.

He said the power firms should not be blamed for the current slow process of providing meters for their customers as that role was alienated after the Nigerian Electricity Regulatory Commission (NERC) unveiled the MAP regulation.

He said the role  permitted metering firms to provide and install the meters for DISCOs.

Oduntan said with the current import duty and other challenges befalling the implementation of MAPs, the NERC ordered that DISCOs meter all electricity consumers by 2021 might not be realistic.

“There is an urgent need for government to intervene so that there will be more meters available to be installed,” he said.

Oduntan said the Nigerian Electricity Management Services Agency (NEMSA) recently confirmed that out of 1.023m meters expected for testing in the first phase of MAPs scheme which began in May 2019, only 273,000 meters have been tested and certified by NEMSA.

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