Local meters

•A way should be devised to accommodate more Nigerian entrepreneurs in the power sector

Local meter manufacturers in the country may be in for a major trouble, going by reports that electricity distribution companies have opted for imported brands. This may not be particularly unexpected, given that the electricity firms are now in private hands. To some extent therefore, they are at liberty to determine who to do business with.

Perhaps the bewilderment in the matter is that early this year, precisely on January 15, the former Minister of Power, Prof Chinedu Nebo, announced the then government’s approval of funds for the procurement of one million meters from local manufacturers to address the challenge of inadequate metering, which remains a festering sore in the power sector. The scheme was initiated by the Goodluck Jonathan administration and funds for the meters were said to have been deposited upfront in one of the banks.

The question that readily comes into mind is whether the then government dialogued with the relevant stakeholders before initiating the project because, if it did, it is unlikely we would be having hiccups in the arrangements a few months after. Another question is, if it did, what were the terms of the agreement before the government deposited money for the products? Are the electricity companies now discarding the local meters due to a breach in the agreement, particularly concerning prices and standards?

Whatever it is, the Federal Government should be interested in the matter. Metering has been a major issue in the electricity sector for decades, with the electricity firms slamming whatever they like on Nigerians as electricity bills, without consideration of their actual power usage and irrespective of whether there is power supply or not. This manifests mainly by way of crazy bills and estimated billing. Indeed, there are instances that light in some neighbourhoods never blinked for months, yet the consumers usually got outrageous bills that they were forced to settle to avoid their power supply being disconnected. Nigeria is one of the few countries where consumers would be charged for services not rendered and the government would be helpless.

Anyway, we had expected that all these anomalies would disappear with the privatisation of the electricity sector. Unfortunately, it appears the electricity companies are not in a hurry to jettison the ancien regime because it is a source of unearned income. Yet, metering is an important component of the electricity distribution system. Therefore, the government has to bring in the parties with a view to getting the best for the country.

If some people had invested in local production of meters, perhaps in response to a clarion call for same in view of the new developments in the power sector, the best the government can do is assist such entities to survive. As the Director-General, Bureau of Public Enterprises, Mr. Benjamin Dikki, rightly observed, it  makes economic sense to leverage the capacity of local manufacturers, as patronising them would go a long way in saving cost; boost job creation whereas if we keep importing, we would only be helping others grow their economy to the detriment of ours. Patronising local companies also helps deepen the economy.

We agree that there is a limit to how far things can be pushed down the throats of the electricity companies because they are now private concerns. But then, the government intervention has to be by way of engaging all the stakeholders, with a view to straightening the curves in the chain. The major fear of the electricity firms is standards; perhaps the other is cost. None is insurmountable if the will is there on the part of the stakeholders. The government must insist on standards; it can also assist the meter producers by way of concessions since it is common knowledge that our environment is generally not conducive to doing business. It would also not be a bad idea if the electricity firms could buy into the meter companies.