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Tag: Meter manufacturers

  • Meter manufacturers mull forex-driven prices

    Meter manufacturers mull forex-driven prices

    Electricity consumers seeking meters may face a more challenging wait. This comes on the heels of a statement from the Association of Meter Manufacturers of Nigeria (AMMON), who at the weekend, warned that the foreign exchange (forex) fluctuations have impacted negatively on the operations in the sector.

    The association, which expressed concern over the challenges posed by foreign exchange fluctuations, said this is also impacting on the continuous supply of meters to the Nigerian Electricity Supply Industry (NESI).

    “As the demand for meters continues to grow, the association emphasises the urgent need for regulatory measures to address the issue of a fixed meter price, especially when all input costs are affected by increasing inflation and foreign exchange movements. This attention is urgently required to ensure the seamless provision of meters across the nation,” AMMON said in a statement at the weekend.

    The body, in the statement, therefore, advocated collaboration between regulatory bodies and the Nigerian Electricity Management Services Agency (NEMSA) to develop cost-effective meter specifications tailored to NESI requirements. By working closely with NEMSA, the association believes that it can contribute to the development of standards that promote affordability without compromising quality and reliability.

    The body further noted that giving consideration to its position on the forex situation as it affects meter manufacturing would not only facilitate the sustainability of the meter manufacturing industry but also ensure that end-users have access to reliable and affordable electricity meters.

    Read Also: Meter manufacturers withdraw case against govt

    AMMON, therefore, called on regulatory authorities to consider the liberalisation of meter prices, by allowing manufacturers to adapt to market dynamics to be able to maintain a steady supply of meters.

    “If this action is taken, it will ensure the continued and uninterrupted supply of meters to meet the nation’s growing demand for reliable electricity services barring the short gap already experienced.

    Besides, it is our believe that these proposed measures will contribute to a more robust and resilient electricity metering ecosystem,” the Association said, reassuring that it remains committed to supporting the nation’s power sector.

    The Association, while restating its commitment to further engaging with relevant stakeholders to implement these recommendations and address the challenges currently faced by the meter manufacturing industry in the country, emphasised on the urgent need for decisive action to address the foreign exchange crisis, inflation, and instability in the metering industry, highlighting the imminent risk of a severe shortage of meters for installation within the next two weeks.

    It appealed to government to consider the liberalisation of meter prices in order to enable manufacturers adapt to market dynamics and maintain a steady supply of meters, adding that cost-effective meter specifications are also essential. AMMON also commended the Minister of Power, Adebayo Adelabu, for the recent establishment of the Presidential Committee on Mass Metering, describing it as a “bold step towards addressing the pressing challenges in the metering sector.”

    The association said, “If urgent action is not taken to prioritise and expedite measures to address the impending shortage, which is occasioned by a three month and growing, supply chain gap by our estimates.

  • Meter manufacturers import equipment

    Indigenous meter manufacturers have begun to import equipment for meter production ahead of the commencement of operation of the Meter Asset Providers scheme this month, Meter Manufacturers Association of Nigeria (MMAN) Executive Secretary, Muhideen Ibrahim, has said.

    In a telephone interview with The Nation, he said the firms, which intend to play as meter asset providers in the sub-sector, have imported materials on ground and are still importing more in order to perform well when MAPs operation begins soon.

    He said the development became necessary in order to assuage the feelings of Nigerians that they would not be able to close up the metering gap of 4.7 million people in the country and even do more.

    Ibrahim said: “Meter manufacturers are ready for the take-off of the new metering scheme known as meter asset providers. They have recruited enough personnel mostly technicians and other workers who are proficient in their jobs for the scheme. The reason is to ensure they do not fail the Federal Government and the consumers whom the scheme is meant for.”

    According to him, shortage of meters and liquidity are the bane of the power industry, adding that the problem is taking a toll on the activities of the operators in the sector.

    The operators in the sub-sector, Muhideen said, require huge funding to be able to operate well, noting that failure to get enough capital for operation would not allow them to play well in the market. He said the development, made prospective meter asset providers to canvass for a single-digit interest rate from the Central Bank of Nigeria (CBN).

    Also, MOMAS Electricity Meter Manufacturing Company Limited (MEMMCOL) Chief Executive Officer, Mr Kola Balogun, said local manufacturers are ready for the scheme. He said meter producers and other operators have acquired capacity that is enough to translate to the success of the new metering scheme.

    “From all indications, operators, especially producers of meters, are ready to contribute their quota to the growth of the sector. Having applied to become meter asset providers, get the certification of the Nigerian Electricity Regulatory Commission(NERC) and went through the modalities for operating in that segment of the industry, I believe that they have what it takes to play well when the scheme kicks off soon,” he added.

    He said Power, Works and Housing Minister, Mr Babatunde Raji Fashola, has done well by looking at the needs of the sector and also provides means of solving it. He said with the operation of MAPs, an end has come to the metering challenge, unemployment and other problems in the metering sub-sector in Nigeria.

  • Meter manufacturers seek single digit credit line

    Momas Electricity Meter Manufacturing Company Limited (MEMMCOL) Chairman,  Kola Balogun has appealed to the Central Bank of Nigeria (CBN) to create an advancement credit line of single digit to meter manufactures for effective execution of the Meter Assets Providers (MAP) scheme.

    Balogun, who spoke in Lagos, at the weekend, identified paucity of funds as a major challenge to the execution of the projects for meter manufacturers.

    He said: “Essentially, for this scheme to be successful, we will need between N10 billion and N20 billion for each of the manufacturers.

    “It’s a huge capital outlay. We urge the CBN to offer us the credit and allow us to pay back in single digit interest rate. We are more than ready to commence because we are well prepared for it.

    “It is just that for us to start execution, we still require the CBN support because of the capital outlay that is required to have efficient deployment. We need the CBN to intervene.”

    Balogun said meter manufacturers were at the position of negotiation, in terms of the execution of the MAP scheme, with the electricity distribution companies (DisCos)

    “We are just waiting for letters of engagement and the extent of the volume we are going to be deploying. The capacities are there, but the funding that it requires is the major constraint and that was the reason why we are appealing to the CBN to interven.

    “This is for providing advance credit line to meter manufactures so that they can buy raw materials ahead of time.

    “The bottlenecks on agreement of terms and condition also slow down the commencement of the projects. You know that there are so many variables involved such as insurance, ability to support the scheme in terms of infrastructure and logistic arrangement.

    “These are the things DisCos want to ascertain before they would conclude on the Memorandum of Understanding (MoU) to be submitted to the Nigerian Electricity Regulatory Commission (NERC).

    “It is after the signing of the MoU that NERC will now give licences to the operators,” he added.

    Balogun said the project would benefit electricity consumers when it finally kicks off, adding that issues of estimated billing and over-billing would also be abolished.

    He said electricity consumers would pay exactly for what they consume and they would be able to read their consumption rates without prejudice.

    “Once the scheme commences, consumers will now pay into the joint MAP account that will be managed by the meter manufactures and DisCos under the Meter Asset provider scheme. It is expected that the scheme will commence before May and the deployment of meters to customers will commence in earnest.

    “After the signing of the MoU, we don’t know when NERC will give us the licence so that rollout schedule will be agreed upon as well as mapping of the area. What NERC wanted to do is the totality of substation; all consumers attached to the substations would be metered 100 per cent, in other to get exact value to the energy auditing process.”

  • Meter manufacturers to govt: break DisCos’ monopoly

    Electricity Meters Manufacturers Association of Nigeria (EMMAN) has advised the Federal Government to break the monopoly of electricity distribution companies (DisCos) in the sale of meters to consumers.

    Its Executive Secretary, Muyideen Ibrahim, told The Nation  that the development would go a long way in addressing the challenges with estimated billings.  According to him, breaking the monopoly would enable electricity consumers buy and own meters.

    He said it would also address complaints over-estimated and outrageous billing from the DisCos.

    Ibrahim said the association had always advocated that the government should liberalise the metering arm of the sector so that everybody could have access to a meter.

    He said: “If every consumer has a prepaid meter, it will allow them to manage their electricity consumption and the DisCos will collect revenue maximally without billing outrageously. But now the consumers are short-changed because they are being given estimated bills. It presupposes that the DisCos are smiling to the bank while the consumers are suffering.

    “Unfortunately, some of the DisCos complain that they don’t have the fund to invest in metering, whereas the meters are available in various warehouses of the manufacturers. If the telecom sector could be liberalised, why not in metering? It will enhance the  power sector and also add value to it.”

    Ibrahim called for a metering summit where stakeholders would come discuss the challenges facing the DisCos and meter manufacturers.  According to him, the manufacturers had invested massively in meters, but unfortunately, they did not have enough patronage for them to do more.

    “It would only be driven by technology. The key thing is the metering code and specification that all the meter manufacturers will comply with. The local meter manufacturers should be encouraged, and as such the government should provide an enabling environment and facilities such as power for them, because they all rely on generating sets to run their businesses.’’

    He urged the Central Bank of Nigeria (CBN) to provide funds for meter manufacturers at single interest rate, stressing that the idea would enable them to import basic raw materials from overseas.

    He said meter manufacturers must have unfettered access to foreign exchange, adding that the development would enable manufacturers to produce at full capacity,

  • Meter manufacturers upbeat as govt is set to approve firms

    Members of the Meter Manufacturers Association of Nigeria (MMAN) are confident of improving their output as the approval of some firms as Meter Asset Providers (MAPs) by the Nigerian Electricity Regulatory Commission (NERC) is underway.

    MMAN Executive Secretary Muhideen Ibrahim said the umbrella body of meter manufacturers was confident that NERC ‘s decision to approve some firms as meter asset providers will boost their profit margins, if the initiative is well implemented.

    He said under the scheme, NERC will license some meter asset providers, which are expected to make available series of services ranging from importation of meters to vending of the product and acting as corporate installers.

    In an interview with The Nation on phone at the weekend, Ibrahim said meter asset providers are going to serve as middlemen in the value chain as they will negotiate between the power distribution companies (DisCos) and the local and foreign meter producers on one hand and the entire electricity consumers on the other hand.

    He described the scheme as a tripartite arrangement, introduced by the government, in order to boost activities of importers, manufacturers and installers of meters, stressing that the issue will improve access to electricity in Nigeria.

    The idea, he said, will promote local content as operators, especially meter manufacturers, will get patronage for their product.

    Ibrahim said: “The scheme has mandated that operators should use 30 per cent local content and 70 per cent foreign content. Going by this rule, operators such as the electricity distribution companies and the local meter manufacturers will benefit greatly.  This implies that indigenous meter manufacturers, which have suffered low patronage, will experience a boost in their activities.”

    He said when this happens, local meter manufacturers, which are seldom patronised by many of the eleven energy distributors, will get better patronage.

    According to him, the issue is going to be a win-win situation for stakeholders, especially the DisCos, who are being accused of not giving meters to the customers and the local manufacturers of the product, who also have suffered losses caused by non-patronage.

    Minister of Power, Works and Housing, Babatunde Raji Fashola, announced the Federal Government decision  to liberalise the metering industry by bringing in more players into the sub-sector.

    Speaking at a stakeholders’ forum in Lagos, he said the government will achieve the goal by introducing and approving meter asset providers and thereafter provide a set of regulation to guide their operation.

    The regulation on meter asset providers provides standard rules for the emergence and participation of independent and competitive meter asset providers in the electricity industry.

    Also, the regulation ensures that licenses are issued to a new class of meter asset providers with a view to complement DisCos efforts to supply meters.

    By this, estimated billing practices is expected to be eliminated in the industry, attract private investment into a viable metering services business, close the metering gap through accelerated meter roll out and enhance customer satisfaction and liquidity of the electricity market.

  • Meter manufacturers to govt: give us right environment

    Meter Manufacturers Association of Nigeria (MMAN) has advised the Federal Government to put in place a conducive environment for the growth of the sub-sector, its Executive Secretary, Mr Muhideen Ibrahim, has said.

    Ibrahim said the sector was battling  obsolete equipment, adding that many customers still used old meters.

    He told The Nation on telephone that many countries were replacing analog meters with either prepaid or smart meters, adding that Nigeria cannot be an exception.

    He said the indigenous manufacturers could produce sophisticated meter, if given the right environment.

    He urged the government to provide power, make funds accessibility easier, reduce import cost, through stabilising the country’s foreign exchange market, giving single-digit interest loans, among others.

    He said when these were provided, indigenous operators would be able to improve their profits and do better in the sector.

    He said activities in the meter manufacturing sub-sector could be deepened, when the stake-holders, including the Federal Government play their part well.

    According to him, efforts should be geared towards patronage of locally produced meters and other power components if the government wants to improve indigenous manufacturing and further move the economy forward.

    He said indigenous meter manufacturers would be able to create more jobs and grow the economy, when their products are patronised.

    Also, the Meter Manufacturing Company Limited (MEMCOL) Chairman, Mr. Kola Balogun, advised the government to implement the various policies in the sector, adding that the idea would help in improving the operators’performance.

    The Minister of Power, Works and Housing, Babatunde Fashola, had unfolded plans by the government to improve meter supply by bringing more players into the sub-sector.

     

     

  • Meter manufacturers root for intervention fund

    Meter manufacturers root for intervention fund

    The Electricity Meters Manufacturers Association of Nigeria (EMMAN), has appealed to the Federal Government to float a special intervention fund that would be accessible to its members at two per cent interest rate.

    Speaking with reporters in Lagos, its Executive Secretary, Mr Muyideen Ibrahim,  said government should create two special intervention funds in form of soft loan to local electricity meter manufacturers.

    According to him, this will promote the sale of locally produced meters to the distribution companies (Discs) at very competitive prices.

    “Government should also prevail on all the Discos to patronise locally produced electricity meters in order to create more jobs for Nigerians,’’ he said.

    Ibrahim advised government to give support and encouragement to local manufacturers as it has given their Chinese counterparts.

    He also urged the Nigerian Electricity Regulatory Commission (NERC) to step up its oversight functions and responsibilities effectively.

    “Government should mandate all the local meter manufacturers to roll out at least 200,000 units of meters monthly in compliance with the Local Content Act on Power Sector.

    “This will keep the factories running and more Nigerians will be gainfully employed,’’ he said.