The Nation Newspaper

Tag: meter

  • Meter manufacturers kick against malicious criticism

    Electricity Meter Manufacturing Association of Nigeria (EMMAN) has warned that it would no longer condone acts capable of undermining its position in the industry. Its Secretary, Mr. Muhideen Ibrahim, said the allegation levelled against the company by some distribution companies (DisCos) that it produces inferior meters compared to the ones imported from China and other countries, was not true.

    He said local meter manufacturers have suffered a lot in the hands of DisCos and their foreign partners, which publicly criticised them for producing substandard meters. Besides, the DisCos said EMMAN members did not manufacture the meters, that they only import accessories and assemble them.

    Ibrahim said: “Criticism is part of life. Without criticism, it would be difficult to improve on the quality of one’s product or services. But the criticism must be objective in order to achieve the goal intended. That is the area where meter manufacturers in Nigeria are having grouse with people that are criticising their product.

    “While it is true that there are producers of substandard products in the country, it would be hasty to generalise that all Nigerians are fake. In the meter manufacturing sub-sector of the industry, meters were produced in line with international standards. That is why the products are certified by duly recognised institutions before they were sold.’’

    Ibrahim also said some DisCos were buying the locally-made meters because they are good and can give them good results. “Why did DisCos keep buying our meters? If the meters are of lower quality, as some sections of the society are made to understand, they would have stopped since,” he added.

    He said the Federal Government licensed four companies to produce meters, adding that the firms have tried to improve capacity in recent times. The companies are MOMAS Nigeria Limited, UNISTAR Nigeria Limited, MOJEC Nigeria Limited, and EMCON Nigeria Limited, he said, stressing that MOMAS has the capacity to produce 50,000 meters monthly, while the other three firms produce between 20,000 to 30,000 meters a month.

    He lauded the Federal Government for its local content initiative, urging it to fulfill its promise of making Nigerians consume what they produce, in order to grow the economy.

    He said countries such as China, Korea, Germany, United States and others grew because they were able to improve on their production, urging Nigeria to follow their footsteps.

    Also the Chairman, MOMAS Nigeria Limited, Mr. Kola Balogun, said the sub-sector has what it takes to compete with their counterparts abroad. He said the firms were able to manufacture prepaid meters and smart meters, despite infrastructural deficiency in the country.

    He said DisCos were importing smart meters at a higher cost, adding that paying local producers of meters for services rendered to them has become a problem to electricity distributing companies.

    Balogun said: “The only snag or problem is that there is no infrastructure in place to do it. This is in the area of technology. Providing smart meters require a communication infrastructure, and that technology is not in place in Nigeria. Do we have the technology in place? No. When they say smart meters, they are talking about meters that provide a two-way communication. The communication takes place between the consumers and their meters.  You can sit in your office and know what is happening to your meters at home.”

  • ‘Local firms can meet meter demand’

    Indigenous companies can meet the requirement for meters, the Minister of Power, Works and Housing, Babatunde Fashola, has said.

    Fashola, who spoke after he visited Mojec International, a meter manufacturing plant in Lagos, expressed delight that there are Nigerian firms that can meet the metering demand of the country. He, however, wondered why there is still a huge meter gap between demand and supply.

    According to him, all that is required for the indutry to thrive, is for players in the power sector, especially the distribution companies and meter manufacturers, to embrace persuasion and reasoning to be able to play their role, adding that this would make the  sector more competitive in terms of pricing and quality of service delivery in the local market.

    He said: “I think that commercial things should be done by persuasion, reason and the dynamics of the economy. When the market is competitive in terms of pricing and quality, then it will make more business sense to produce and patronise meters locally.”

    Mojec International Managing Director, Mrs.Chantelle Abdul, said the lack of finance to run factories, as well as the inability to provide some kind of vendor financing to off-takers remains a major challenge for meter manufacturing.

    “One of our critical issues at the moment is lack of access to foreign exchange. A lot of our manufacturing inputs rely on goods abroad. My goal as a manufacturer, is to produce much of my products with local inputs so that we can go as far as producing our chips and the PCB which is the brain of the meter and all other components that are required,” she Abdul said.

    She regretted that because the country lacks auxiliary firms that can support bigger manufacturing firms, it is increasingly becoming difficult for the sector to produce with locally sourced inputs, thereby increasing cost of production.

  • Meter manufacturers sack 50% of workforce

    No fewer than 600 workers of meter manufacturers have lost their jobs in the past six months. Reason: lack of patronage in the power sector, The Nation has learnt.

    The firms, under the umbrella of the Electricity Meters Manufacturers Association of Nigeria (EMMAN), resorted to sack because of poor revenue, it was learnt.

    The manufacturers said they couldn’t cope with their overhead costs in view of the prevailing industry challenges, including low patronage of their products by the electricity distribution companies (DisCos), weak exchange rate of the naira to dollar and other foreign currencies.

    A source at one of the local meter manufacturers told The Nation that the meter manufacturers  sacked between 50 and 55 per cent of their workers.

    The source said the meter manufacturing firms, including MOMAS Nigeria Limited, sacked about 220 workers, Unistar Nigeria Limited (100); Mojec Nigeria Limited (100), and Emcon Nigeria Limited (100).

    The Nation learnt that due to low patronage, the firms have been laying off their staff.

    EMMAN’s spokesman Ibrahim Muhideen who, confirmed the staff downsizing, said more workers would go except something was done to address the meter manufacturers’ problems, such as poor patronage to enable them boost their income.

    Muhideen said the companies were operating below capacity, a development, which rendered many of their workers redundant. Describing the development as rather unfortunate, Ibrahim urged the Federal Government to intervene by liberalising the meter market to allow EMMAN members sell to individuals and corporate organisations by the vendors approved by the Nigerian Electricity Regulatory Commission (NERC).

    Muhideen said: “The government should liberalise the meter market so that individuals can also buy meters from approved NERC vendors and installers. If the market is liberalised, more electricity consumers will be metered and it will go a long way in addressing problems such as “crazy” and estimated billing system that is currently being battled by consumers.

    He urged the government to allow meter manufacturers sell meters to the consumers because some distribution firms were not willing to give meters to customers.

    The Chief Executive officer, MOMAS Nigeria Limited, Mr. Kola Balogun, also said his firm retrenched over 200 workers, which according to him represents over 50 per cent of the workforce.

    He said the wage bill is high, and that the firm cannot afford to continue to pay salaries, stressing that more people would lose their jobs across board,if the situation does not  improve.

    “Despite the fact that our production lines have been improved to meet international standards, coupled with the high quality meters we produce, the electricity distribution companies don’t patronise us. Only Ibadan Electricity Distribution Company (IBEDC), Abuja Electricity Distribution Company and Port Harcourt Distribution Company (PHDC) buy from us. But that is not enough. Thousands of meters are in the store because there is no patronage,” Balogun added.

    He urged the government to create a five per cent special fund for meter manufacturers to aid their operations and enable them sell their products at competitive price.

  • Patronise made in Nigeria meter, says Fashola

    Patronise made in Nigeria meter, says Fashola

    Minister of Power, Works and housing Mr Babatunde Raji Fashola yesterday in Kano called on Electricity Distribution companies in the country to  patronize locally manufactured meters so as to contribute to the growth of the nation’s economy.

    Fashola, who was in Kano to launch the mass meter deployment for Kabuga axis Kano Electricity Distribution company (KEDCO), argued that the quality of the locally manufactured meters in Ogun State remains the same if not better than the ones imported from China and India.

    The minister, who revealed that the power sector is spending over N500 million for the installation of meters across the country, noted that the development has also opened windows of opportunity for job creation for the unemployed youths.

    According to him, the power sector would be distributing about 115,000  meters across the nation this year alone. He urged consumers to be patient as the ministry is committed towards ensuring that in no distance time all consumers nation wide would have their own meters.

    He said he personally inspected some local meter manufacturers in Ogun State and found them having similar quality with those imported from China and lndia.

    He said, “So far, KEDCO has spent N5. 7 b for the procurement of the meters, while N500m is for its installation and the work will be done by Nigerians which will contribute to employment generation.”

     

  • Sack fever grips workers in meter manufacturing firms

    Fear of job loss is rife among local meter manufacturing companies  following their inability to produce at optimal level, The Nation has learnt.

    It was gathered that the firms, which have been sidelined by the power distribution companies (DisCos) in procurement of the locally manufactured meters, are said to have commenced pruning of their workforce.

    It was further gathered that many of the firms have sacked hundreds of workers, due to what they described as the ‘low patronage’  recorded in the history of manufacturing of meters in the country.

    While many of the workers were asked to leave pending when the companies’ production and sales pick up, others were directed by their managements to work part-time.

    The Chief Executive Officer, MOMAS Nigeria Limited, a local meter manufacturing firm, Kola Abalogun, said many of the firms in the  electricity sector are in dire strait, due to problems such as poor funding, low patronage  and the government’s refusal to come to their aid through an effective policy that will induce demand of their products.

    Balogun lamented that the meter manufacturing firms are hard hit because they are  being negleted by the DisCos.

    He said many of the DisCos are not buying meters from the local manufacturers, despite the fact that they produce meters that can compete favorably with the ones imported from abroad.

    He said:  “For MOMAS, we have downsised. We have sacked some of our workers because there is no way we can continue to pay their salaries when a lot of meters are stocked in the store waiting endlessly for buyers.

    “We have told them that many of the workers would be recalled or more employed in the event that activity picks up again in the sub-sector. This is the situation on ground. I cannot speak for other manufacturers. But I believe that we are all having one challenge or the other. The major one is that many of the DisCos are not buying meters from us.”

    He said only one DisCo, or two buy meters from MOMAS, saying the issue of power supply remains a challenge as the firms cannot continue to run on generators and survive.

  • EEDC, Ecobank unveil pre-payment meter

    EEDC, Ecobank unveil pre-payment meter

    The Enugu Electricity Distribution Company (EEDC) and Ecobank Nigeria Limited have partnered to provide pre-payment meters for electricity consumers. Payment for the meter will be through bank draft or cash deposit into designated Ecobank branches.

    In a statement, the EEDC said the Credit Advance Payment for Metering Implementation (CAPMI) scheme was designed to enable customers of obtain smart meters.

    It said the scheme enables customers pay for the purchase and installation of meters within 45 days.

    EEDC is currently offering two types of meters; they are: single phase smart meter with split unit, which goes for N39,375 and three-phase smart meter with split unit, which goes for N68,901. These costs cover installation of the meters. “The cost of acquiring the meter and meter box will be paid back to the customers in form of energy recharge, over a period of 36 months, at 12 per cent interest rate,” the statement said.

    The EEDC remains passionate about improving electricity supply to its customers, metering them and addressing their complaints and other power needs.

  • Benin DisCo votes N2.7b for meter acquisition

    The Benin Electricity Distribution Company (BEDC) has set aside N2.7 billion to acquire smart meters for the over 741,000 customers in its network, The Nation has learnt.

    The Chief Executive Officer, (BEDC), Mrs. Funke Osibodu, stated this during an interaction session with reporters in Lagos. She said the company will start with installation of over 100,000 customers in the first instance.

    She  said the firm is aggressively addressing the operations, maintenance, and human resources challenges it inherited from the defunct Power Holding Company of Nigeria (PHCN). She listed some of the operations and maintenance issues BEDC inherited to include, aged and poorly maintained system, unreliable and overloaded system, low demand side management (DSM) initiative, corporate governance challenges, lack of technology intervention to curb revenue leakage and lack of skilled manpower.

    She noted that since takeover of the utility in November 2013, several upgrades have been carried out, and still ongoing, while reliable energy audit figures are unknown. Revenue Assurance Unit commenced with 250 feeder check meters in place for energy accounting, while enumeration and customer regular energy audit have commenced, she added.

    Osibodu stated that major improvement in safety practice has also begun to address the poor safety practices and unsafe network for the public, caused by non-abidance to standard safety procedures and regulations before undertaking network maintenance work, adding that improvement in safety standards and equipment are impressively in progress.

    On manpower challenges the company inherited, according to Osibodu, include untrained manpower to handle preventive and breakdown network maintenance, indulgence in unethical activities by the field force leading to customer mistrust in the DisCo, de-motivation amongst employees leading to lack of will to perform, lack of performance oriented culture, and large workforce with inadequate skill set, among others. The BEDC chief, however, said large scale training has commenced at all levels, and commercial disciplinary process put in place while performance-oriented culture has been entrenched with recruitment of over 500 skilled workforce.

    Osibodu said the BEDC has 741,376 customers and to give top service to them, the firm has recruited 250 young graduates, adding that the recruitment was carried out in two batches. The first batch consisted of 100 young graduates who have since completed their training, while the second batch of 150 young graduates are currently undergoing training.

    She expressed confidence that the N2.7 billion investment in metering project will adequately address customers meter challenges. She lamented that the BEDC took the blame for every problem in the power sector because it directly interfaces with the power consumers, adding that the customers don’t know that the distribution company doesn’t have control over the generation and transmission companies.

    “We don’t have control over generation and transmission. We are like collection agents for the entire power industry. Across the power supply value chain in the Nigeria Electricity Supply Industry (NESI), we collect the entire money but just get 25 per cent of the total collections.

    “Once we collect the billing from the customers, the generation companies (GenCos) get 60 per cent and pays the gas suppliers, Transmission Company of Nigeria (TCN) gets 11 per cent, while the regulator, bulk trader and market operator get the remaining four per cent.

    “We are directed to meter all our customers within one year, but we are constrained by the limit of capital expenditure (capex) that we can invest. We at BEDC cannot spend above N4 billion per year as capital expenditure and if we invest above that, we won’t be able to recover our investment due to the present tariff structure,” she added.

  • China, others mull meter plant for Akwa Ibom

    China, others mull meter plant for Akwa Ibom

    Technical partners from China, Pakistan and India have arrived Akwa Ibom State to conclude arrangement for the take-off of a meter manufacturing company, Metering Solutions Manufacturing Services Limited (MSMSL), which ground breaking was performed December last year at Awa  in Iman, Onna Local Government Area of the state.

    Speaking with reporters after a meeting with Governor Udom Emmanuel, at Government House, Uyo, MSMSL spokesperson, Mr. Zhang Loohang, said the company, which has just arrived Africa, is cited in state because of its strategic location in the Gulf of Guinea.

    He attributed its establishment to the passion for making electricity available and affordable in the state by Governor Emmanuel, stating that electricity holds the key to industrialisation which the state governor seeks to put in place for his people.

    Loohang said MSMSL is a conglomerate, which would  proffer solution to problems arising from electricity generation and distribution.

    He added that the company, when operational, will produce single phase and three phase electricity meters in various configurations and mountings, light weight, slim skeletal, compact meters for pole top installation, pre-payment meters, split meters, standard one unit electricity meters, bulk electricity meters, maximum demand meters and smart electricity meters.

    The company, which he said, is designed as a high technology hub for production, testing and servicing of electricity meters and allied products has room for expansion in a modular fashion for additional production lines to develop and assemble various models of electricity meters and accessories.

    He assured that the firm would help electricity distribution companies to check theft, nonpayment, unreliable billing, consumer resistance, lost of revenue and also ensure availability of Nigeria-based products which are of high quality and accessible to customers, in addition to creating high tech, non oil related employment thereby making a strong contribution to economic uplift of the region.

  • Eko DISCO votes N50b for meter acquisition

    Eko DISCO votes N50b for meter acquisition

    Eko Electricity Distribution Company (EKEDC) has earmarked N50 billion to procure smart meters to realise its metering programme planned for three years. The amount is expected to cover the metering of the company’s over 400,000 customers.

    The Managing Director/Chief Executive Officer, Dr. Oladele Amoda during the quarterly briefing on the company’s operation said 7,500 maximum demand (MD) meters and 50,000 non-MD have currently been acquired, and installation of the meters have begun.

    He said $9.7 million was spent on purchase of the MD meters while N2.8 billion was spent on non-MD meters, in all, about N5 billion has been spent on the MD and non-MD meters. He noted that the company has about 400,000 customers and an estimated N50 billion will be able to meter all of them, he added.

    Amoda said: “To tackle the metering challenge, a total of 7,500 MD meters have been procured at the cost of N2.8 billion and another 50,000 meters for non-MD customers. These meters both for MD and non-MD constitute only the first phase of our metering plan that will see all our close to 400,000 customers metered free of charge. Installation of the first phase meters for MD and non-MD customers has already begun.

    “Though it will not be possible to reach all customers at the same time, the assurance for all customers is that in end, everyone will be metered with smart meters free of charge. Because of our belief in contributing meaningfully to the local economy, we have procured a larger portion of these meters from local meter manufacturers.

    “For those customers that cannot wait for the installation schedule, can get their meters immediately through Credited Advance Payment for Metering Implementation (CAPMI). Such customers pay for the meters and later paid back gradually by the distribution company.

    “Altogether, a total of N50 billion will be expended to cover all customers within the next three years.”

    He noted that the rehabilitation effort of the company is ongoing and assured customers that the impact of the efforts will soon be felt and seen, adding that the rot caused in the power sector due to decades of neglect is being cleaned. Several transformers are being injected into the system, while lines are being rehabilitated and upgraded, he added.

  • Eight nabbed for meter bypass in Ikeja

    Eight persons have been arrested for allegedly tampering with meters installed by Ikeja Electric at its Abule-Egba and Ikorodu Business Units.

    The suspects arrested for ‘meter bypass,’ were said to have deliberately manipulated meters installed in their residences to circumvent appropriate payment for energy consumed. The suspects who reside at No. 8, Ibrahim Adejare Street, Ajuwon, Abule-Egba, Block 7 Flat 5, Block 50 Flat 1, Block 10 Bungalow, Block 2 Flat 5 and Block 1 Flat 6 of Tinubu Estate, Odonla Ikorodu- Lagos, were apprehended by officials of the Nigerian Security and Civil Defence Corps (NSCDC) and Mobile Policemen on October 6 and 9, 2015, following a complaint by Ikeja Electric.

    According to a statement issued by Ikeja Electric, investigations are ongoing to ensure the suspects are made to face the wrath of the law, along with possible collaborators who are believed to be part of a notorious syndicate.

    The management said the company has been grappling with the menace of individuals who deliberately destroy the firm’s equipment and installations across its business units. The Managing Director, Abiodun Ajifowobaje said the company has within the last 18 months spent over N11million to malicious damage to its transformers, installations and upgrade equipment. The company has also lost revenue through meter bypass involving over 75,000 customers who have not paid their electricity bills in the last couple of months.

    He urged customers to be part of continuing efforts aimed at safeguarding equipment in their neighbourhood by reporting the activities of vandals and saboteurs to law enforcement agencies and/or Ikeja Electric business offices.

    The company has received the backing of various security agencies who have vowed to check the menace of vandals and energy thieves through prosecution. Ikeja Electric is currently installing advanced prepaid meters across its network in line with its commitment to service excellence.

    The company stated that the advanced meters, meter application forms as well as installation services are free and as such customers are advised not to pay adding that customers its helplines on 01-4483900, 0700-0-2255-453 and 01-7000250 or send an email to Customercare@ikejaelectric for help and clarifications.