Meter manufacturers demand price hike over devaluation

74 Views

A total of 17 manufacturers of electricity meters are demanding an increase in the cost of the commodity following the rise in inflation and foreign exchange rates, among other economic variables.

The meter producers under the aegis of Meter Asset Providers resolved at the end of a meeting that the Nigerian Electricity Regulatory Commission should carry out an upward review of the current price of prepaid meters across the country.

In a communique issued after the meeting and made available to our correspondent in Abuja on Monday, the MAPs listed the upward review in meter price as the first resolution reached by the 17 manufacturers.

They said, “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.

“These factors lead to a global increase in the prices of raw materials and components for the manufacture of prepaid meters.”

The MAPs, however, noted that there would be corresponding downward review of meter prices when there was a downward movement in foreign exchange rates and other cost factors.

Speaking on the side-lines of the meeting, the Executive Vice Chairman/Chief Executive Officer, Holley Metering Ltd and Celdon Group, Ifeanyi Okeke, commended the Central Bank of Nigeria for funding the National Mass Metering Programme.

He said producers of meters were optimistic that the NMMP would effectively support in closing the metering gap in Nigeria and bring an end to estimated billing.

Nigeria’s power sector is suffering from a huge metering gap and closing this gap is expected to improve revenue collection, transparency, payment discipline, as well as improve customer satisfaction in the industry.

On foreign exchange availability, the meter producers requested that the CBN should guarantee access to forex 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 also highlighted 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.

Meter producers at the meeting included MEMMCOL (Momas), MOJEC International Ltd, Protogy Global Services Ltd, UNISTAR Hi-Tech Ltd, Integrated Resources Ltd, Conlog Metering Nigeria Ltd, New Hampshire Capital Ltd, Holley Metering Ltd, and Tinuten Nigeria Ltd.

Others include Gospell Digital Technology Ltd, Integrated Power Ltd, Cresthill Engineering Ltd, Bendoriks International, CWG Plc, Electrometer NG, Meron Nigeria Ltd, and ARMESE Consulting Ltd.

GTI

GTI is a leading Nigerian Investment Banking group with proven expertise in Financial advisory, Securities Dealing (Fixed Income and Equities), Asset management and Deal Origination. We have strong capacity in financial service delivery.

You may also like...