The Nation Newspaper

Tag: meters

  • DisCos, manufacturers quarrel over meters

    Power distribution companies (DisCos) and indigenous manufacturers of meters are trading words over the  quality and quantity of meters produced.

    Some officials of Ikeja Electric (IE), Eko Electricity Distribution Companies (EKEDC) and Abuja Electricity Distribution Company (AEDC), who spoke to The Nation at a stakeholders’ forum, said the DisCos were not patronising local meters manufacturers because their products were of poor quality.

    The officials, who pleaded not to be mentioned, said meters imported from Europe and Asia were of better quality, adding that every organisation wants the best.

    Ikeja Electric Acting Chief Executive Officer Mr Anthony Youdewei said only a few meters were produced in the country.

    He said none of the firms approved by the Federal Government to manufacture meters could supply the needs of the market.

    He said: “After a thorough appraisal of the situation in the  electricity sector, we, at (Ikeja Electric), have realised that local manufactuters of meters are incapable of meeting the needs of power distribution firms. Though the companies are still producing meters, they supply smaller quantities to the market.’’

    He added that none of the meter companies has over 50,000 meters in stock.

    “If you visit the meter factories, you would see that none of them have 50,000 meters in stock. What they do is that they import materials, couple and sell them. The demand for meters, by DisCos, is huge, because they have millions of cusomters in their records,’’ he added.

    Electricity Meters Manufacturers Association of Nigeria(EMMAN) Secretary Mr Muhideen Ibrahim,  denied the allegations.

    He said the group comprised  five manufacturers, adding that each could supply at least 100,000 meters to the market.

    On quality, Ibrahim said DisCos, which bought meters from local manufactuters have never complained of poor quality.

    MEMCOL Nigeria Limited Managing Director Mr Kola Balogun also denied the allegation of lower production of meters, adding that a local manufacturer could produce over 100,000 meters, depending on demand.

    Balogun, whose firm manufactures meters, said MEMCOL has over 200,000 meters in stock, adding that the company produces pre-paid meters and smart meters.

    He said the meters were patronised by Ibadan, Abuja and Port Harcourt DisCos, because they meet international standards.

    ‘’Are we to talk of voltage? Are we to talk of smart technologies, which enable owners to have updates on the working of his/her meter, not minding the distance?’’ he asked.

  • ‘Why meters are manipulated by customers’

    Customers and meter  installers are conniving to manipulate the equipment, The Nation  has learnt.

    The installers were hired by electricity distribution  companies( DisCos) because of shortage of skilled workers.

    It was gathered that some of those hired by the DisCos to install meters connive with corrupt customers to manipulate the meters for selfish reasons.

    The Nation’s findings reveal that the firms oftentimes use adhoc staff to instal meters, an issue, which is having undesirable effect on their operation.

    This issue made the firms to contend with several cases of meter bypass and the associated loss of revenue.

    A source close to one of the DisCos, who spoke on condition of anonymity, said many of the energy distributors are contending with several cases of meter bypass and loss of revenue occasioned by the use of unqualified workers to install meters.

    The source said the firms, as a result of these untoward practices, spend several months to install between 20,000 and 30,000 meters, which prevent customers from getting meters on time. This situation makes many customers to continue to pay estimated bills, and lose money.

    The source said: “There is no denying the fact that the firms were grappling with problems, such as finance, shortage of manpower, lack of skilled workers to carry out metering activities, estimated billings and others. While some of the DisCos have taken delivery of imported meters while others are yet to but distribution and installation of the meters continue to be a problem. The managements of the power firms were working hard to overcome the problem.”

    Ikeja Electric (IE) spokesman, Mr. Felix Ofulue, confirmed that there were not enough skilled workers to install smart meters, which the DisCos were deploying.

    He said the DisCos were deploying a technology known as Advanced Metering Infrastructure (AMI) to improve their operation, adding that the technology ensures that consumers use smart meters and interface with their DisCos.

    The meters, Ofolue said, are intelligent, interactive and provide a two-way communication between the DisCos and their customers, adding that the industry lack skilled workers that can install the meters

    National Power Training Institute of Nigeria (NAPTIN) Chief Executive Officer, Reuben Okeke said the sector lacked the capacity to install meters. He said many meters were by-passed because they are not well installed.

    He said the bypassing started from when the meters were installed, arguing that meters that were not properly installed were prone to manipulation.

    He said unscrupulous people tamper with meters during installation to prevent them from registering the actual amount of energy   consumed.

    Okeke said the development made NAPTIN to partner the United States Energy Association (USEA) to train people on how to install meters, among carrying out other technical responsibilities in the sector.

  • DisCos are frustrating availability of meters

    DisCos are frustrating availability of meters

    One issue that has pitched power distribution companies (DisCos) against their customers is meter. In this interview, the Chief Executive officer, MEMCOL Nigeria Limited, a meter manufacturing company, Mr Kola Balogun, said metering problems remained unresolved because of the deliberate action of the DisCos to continue milking consumers through estimated billing regime. Balogun spoke with AKINOLA AJIBADE on this and other issues. 

    What is the state of the metering industry in Nigeria?

    The situation in the industry could be likened to happenings in the country. The industry is a reflection of the inconsistencies that has characterised the polity called ‘Nigeria’. These inconsistencies have helped in slowing down the growth of the nation’s economy. In order to contribute to the industrial growth of the country, MOMAS Nigeria Limited started investment in metering business about 20 years ago. The idea has paid off as the firm has manufactured and deployed a lot of meters to consumers, prior to 2013 when the power sector was privatised. Not done yet, the firm wants to increase its production in order to deepen the growth of the sector. To achieve this, the company has invested in meter facility in the West Africa sub- region.

    What is the capacity of the metering industry, vis-a-vis the number of meters, which local manufacturers can produce?

    The industry has capacity to absorb several millions of meters. In fact, it would be difficult for the country to exhaust the volume of meters produced locally in view of the fact that many new houses are springing up annually. Presently, five meter manufacturing firms are operating in the country, albeit at lower capacity. They are MEMCOL, MOJEK, UNISTAR, EMCON and SWEDEN Nigeria Limited. MEMCOL has the capacity to produce 50,000 meters monthly, while each of the remaining four companies can produce between 20,000 to 30,000 meters.

    What is the major threat to the growth of local meter manufacturers?

    Lack of patronage is the major threat to the growth of local manufacturers of meters in Nigeria. The power distribution companies (DisCos), which by law are required to buy meters for onward distribution to their customers, hardly buy from local manufacturers. Usually, the DisCos buy meters from manufacturers abroad.  They go outside the country to open credit facility, buy meters there and bring them to Nigeria.  Whenever the DisCos buy meters from local producers, they do so on credit. This has made it difficult for local manufacturers to survive. However, Ibadan power distribution company (IBEDC), its counterparts in Abuja and Port Harcourt are buying meters regularly from MEMCOL Nigeria Limited. It is sad that meters that are manufactured by local companies are not well patronised.

    Beyond this, what are the other problems facing manufacturers of meters in Nigeria?

    Electricity is another factor inhibiting the growth of the manufacturers. The worsening power situation and its attendant poor supply in the country is taking its toll on manufacturers of meters, and other products. In MEMCOL Nigeria Limited, access to power from the grid has not been encouraging. The reason is because power is not readily available in Mowe-Ibafo business corridor where the company is located. Many industries would have sprung up in that corridor, but for the poor electricity supply in the country. And to stay in business, we decide to run our factory on generator, albeit with pains. It is difficult for a business that is run on generators to be cost-effective. That is why I said earlier that the development of industries is a function of a nation, and not an individual. It is the nation that is expected to protect industries from collapsing.

    What is the level of capacity utilisation in the industry?

    The capacity utilisation is dropping fast. The reason is because the metering companies are operating at optimal capacity. The firms are keeping huge stocks in their factories, due to lack of patronage. Our company has a large quantity of meters in store. Since we are not producing optimally due to problems such as poor patronage, electricity and others, we decided to cut down our workforce, pending the time when situation improves. We cannot afford to keep the human resources (personnel) that would help in producing meters, when it is obvious that the micro and macroeconomic environment in which we operate is not favourable. We cannot continue to keep, having realised that they would be idle because it would be difficult paying their salaries. So this has made capacity utilisation to drop drastically. In the event that the five companies approved by the government to manufacture meters are well financed, they would not only produce a lot of meters monthly, but would assist in bridging the supply and demand gap in the industry.

    The low patronage of your meters by electricity distribution firms, may be due to their low quality?

    To the best of my knowledge, meters that are produced in the country are of good quality. The meters can compete favourably in terms of quality, with those meters that are being imported from countries like China, South Africa, among others.

    For instance, at MELCOM, we produce intelligent meters- meters that provide more than ‘two-way communication. We are designing meters that have higher integrity and standards. We manufacture meters that allow users or owners to communicate with them easily.From a distance, owners can communicate with their meters by knowing what is happening to them.We produce both pre-paid meters and smart pre-paid meters. The former can be easily by-passed by criminals, while the latter cannot be by-passed.

    What efforts are you making to convince DisCos of the quality of your meters?

    What other convictions do the power distribution companies need from us again? We have been producing meters that are not only of good quality, but can compare with the ones produced abroad. The DisCos are aware of this. They know that our meters are good. However, the issue of poor patronage suffered by indigenous manufacturers of meters is beyond quality. Two reasons suffice in this regard. First, the craze for products produced in foreign countries by Nigerians has affected the sales of meters manufactured in the country.

    Secondly, the decision by the DisCos to continue to charge consumers estimated bills make them to buy meters abroad. The DisCos know that local manufacturers have capacity to meet their metering needs, and that once they fully patronise indigenous manufacturers, they would not have any excuse of not providing meters to customers under their jurisdictions. When this happens, it would be difficult for the DisCos to charge estimated bills.

    Can you substantiate the claims that DisCos refused to buy meters from local manufacturers because they want to continue to collect estimated bills?

    It is not an allegation. It is a fact. We have found out that estimated bills are the easiest ways of generating revenue by the DisCos. The power firms are hiding their love to make money through estimated billings. The investors, who bought the assets of the Power Holding Company of Nigeria (PHCN), borrowed money to acquire these assets. They need to refinance the loans they got from banks. And the safer and easier way to do this is to make money, by collecting outrageous or crazy bills from customers overtly or covertly.

    What is the solution to problems such as low patronage, and poor funding facing local manufacturers of meters?

    The solution lies in the ability of the Federal Government to support local meters manufacturers with funds. The government should try and provide intervention funds for manufacturers of meters, the same way it provided funds for the power generation companies (GenCos) DisCos in order to subsidise their operation. If the government can provide funds for power generation companies, it should also provide funds for companies servicing them.

    The government should intervene in order to prevent metering industry from collapsing. Also, the government should compel DisCos to buy meters from local manufacturers since they are producing quality meters. Doing this means that the government is killing two birds with one stone. By this, the government is promoting local content initiatives, introduced to promote the growth of indigenous business operators, while at the same time, helping in conserving foreign exchange. This means that monies that are spent on importation of raw materials and finished goods, would be domiciled in the country. When we make do with what we have, we are saving the country from brain drain. The multiplier effects are industrial growth, technological advancement, unemployment generations and others.

    How will provision of intervention funds, by the government, solve the problems of meter’ manufacturers?

    Yes, the funds would improve the conditions of the manufacturers. Once the Central Bank of Nigeria (CBN) makes the funds available to manufacturers at a single-digit interest rate, the pressures on firms that produce meters locally would reduce. The loan portfolio of local manufacturers is too bad, because they are borrowing money at commercial rate of about 25 per cent. This is against a situation, where foreign companies are getting loans at less than five per cent. How do we compete with our foreign counterparts? The government needs to intervene urgently in the metering industry, by supporting it with funds.

  • Stakeholders task govt on sub-standard meters

    Nigeria is battling with low-quality meters because the Federal Government, the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Metering Management Agency(EMMC) and others have failed to formulate policies to regulate the importation of meters. Coupled with this, is the love of money by importers, stakeholders have said.

    The stakeholders include the  Secretary, Electricity Meters Manufacturing Association of Nigeria (EMMAN), Muhideen Ibrahim  and the Managing Director, MEMCOL Limited,  Mr Kola Balogun.

    According to them, there is no regulation to check importers of meters. The development is having grave consequence on the industry.

    Ibrhahim said sub-standard meters were installed in Abuja and other cities a few years ago, adding that the meters did not last.

    He said people buy sub-standard meters from China because they are cheap, without considering the interest of users of the meters.

    He said: ‘’ Sub-standard meters work for a while; may be three to four years.  Aside that the meters are of lower qrade, they are easily by-passed.When the meters are by-passed, the power distribution companies (DisCos) bear the brunt, by not generating enough revenue.

    ’’Balogun said the meters’ voltages are below global recommendation.

    ‘’While the voltage approved for meters in the United States, the United Kingdom and other countries is 220 to 240, this could not be said of Nigeria where the voltage has dropped to 110 to 80. When companies import meters from developed countries, they do not bother to re-configure the voltage to meet the needs of users. Failure to do this means people who use such meters will not enjoy them,” he said.

    He said voltage flucturates in the country, stressing that there are problems when  voltage rises beyond normal level.

    Ibrahim urged the Federal Government to put in place measures  to domesticate imported metersand insitute policies that would improve  the growth of local manufacturers of meters.

  • Meters manufacturers accuse DisCos of neglect

    The Electricity Meters Manufacturing Association of Nigeria (EMMAN) has said the reason the electricity distribution companies (DISCos) do not patronise them is that they make more money through estimated billings.

    Other reasons, the body claimed, include plans by the energy firms to import meters from China and other developed countries to attract foreign investors.

    Its Executive Secretary, Mr Muhdeen Ibrahim, said the DisCos were not ready to source meters locally for their customers.

    He urged the DisCos to patronise local manufacturers, adding that this would enable them to meet their customers’ demands.

    According to him, when this happens, the power firms would not be able to charge their customers estimated bills, arguing that  this would  affect their earnings.

    According to him, local meter manufacturers have the capacity to produce enough meters in the country, insisting that the DisCos know this but refused to patronise them because they want to continue making money through estimated billings.

    He said: ‘’It is not that the local meter manufacturers do not have the capacity to produce enough meters in Nigeria. The capacity is there, but the problem is that DisCos want to make money through estimated billings. Also, they want to continue to patronise meter producers abraod, where they falsely hope to get better meters.

    ‘’Meters produced by indigenous companies are far better than the ones produced abroad. The craze for anything western is making DisCos to jettison local meter producers for their foreign counterparts.

    He said the allegation by the DisCos that the meters produced in Nigeria are not compatible with their technology was untrue.

  • How consumers tamper with meters, by firm

    A Meter manufacturing firm has revealed how consu-mers tamper with their meters to avoid paying the correct bill.

    According to Mr Bola Balogun, managing director of Momas Nigeria Ltd, an indigenous meter firm, they deconstruct analogue meters and by-pass prepaid meters, to perpetrate the act.

    In an interview, Balogun accused some consumers of preventing distribution companies (DisCos) from ascertaining the quantity of energy they use.

    This, he said, prevents power firms from geting accurate readings on the meters and billings.

    He said many analogue meters were old and have outlived their usefulness, adding that the development made it easier for people to deconstruct them and further stop them from reading.

    Balogun said: “Analogue meters are no longer fashionable globally. They are obsolete and found to be ineffective means of gauging or measuring the volume of energy used by consumers. Once a meter is 10 years old, its work rate has reduced. Even, when such a meter is re-conditioned, it cannot read energy effectively. When this happens, consumers do all sorts of things on the meter. They open it, remove some parts and replace them with the ones that would not allow it to measure the level of energy consumed by its owners.’’

    According to him, pre-paid meters were introduced by power firms to reduce the stress of  reading meters, and further ensure that that consumers pay for the energy they use.

    Balogun said the reason for pre-paid meters has been defeated as people by-pass them. He said people who by-pass pre-paid meters, do so in order to stall efforts made by the DisCos to know how the meters work.

    He said when people by-pass pre-paid meters, they stop buying energy units on the meters, adding that the idea has provided the perpetrators of such crime an opportunity to access electricity without loading their meters.

    He said the issue has resulted in huge debt owed power firms, arguing that DisCos are advocating the use of smart meters in order to reduce the sharp practices carried out on the meters.

    The Eko Electricity Distribution Company (EKEDC) and Ikeja Electric kicked against issues, such as meter by-pass, among others.

    They said untoward practices was inimical to the growth of the Discos and the power sector, urging customers to desist from the activities.

  • Eko DisCo partners Mojec on smart meters roll out

    Eko Electricity Distribution Company Plc (EKEDC) is partnering with an indigenous smart meters manufacturing company, Mojec International Limited, to roll out smart meters for its customers.

    This was made known by the management of EKEDC during an inspection tour of its central store located at Ijora Olopa area of Lagos State where thousands of Mojec smart meters are in stock and ready for installation for the customers.

    The Managing Director, EKEDC, Oladele Amoda, said the distribution company under the new metering programme, will ensure that all customers within its network are provided with smart meters in line with the objective of adequately metering unmetered customers and those that have analogue and malfunctioned meters.

    “This new prepaid meters roll out plan is a massive one, as you can see, we have several thousands of smart meters in our store and our engineers have already commenced installation for the customers. We want to assure all our customers that we would not relent in our effort to ensure all customers are provided with prepaid meters within few months,” he said.

    Amoda assured of the company’s commitment to completely eradicate estimated billings, which he noted, is one of the major issues in customers’ dissatisfaction and distrust of the distribution companies (DisCos) under the old Power Holding Company of Nigeria (PHCN). He also restated EKEDC’s resolve to constantly improve supply and enhance consumers’ satisfaction.

    He praised Mojec International Limited for its resolve and commitment as a trusted partner to the utility as well as its provision of world-class quality meters, which are now being deployed to customers.

    The Managing Director, Mojec International Limited, Ms. Chantelle Abdul, explained that the firm’s prepaid meters are of international standard and are tropicalised for the Nigerian environment, to withstand the weather condition such as temperature, humidity, meter tampering and energy theft. Meters manufactured in Nigeria by indigenous companies have been specifically designed and crafted to withstand the extreme weather of time and humidity condition as well as theft situation peculiar to the Nigerian environment, she added.

  • Eko DisCo promises meters

    Eko DisCo promises meters

    The Eko Electricity Distribution Company (EKEDC) is committed to providing meters to its customers, irrespective of the challenges in the sector, its Chief Operating officer, Sam Nwaire, has said.

    He said the Federal Government gave the power distribution companies (DisCos)  a five-year term  (2013-2018)  to supply meters to their customers, adding that the problems in the industry  have prevented many firms from meeting the date.

    He said: “The Federal Government gave a five-year term for the supply of meters to the DisCos. The agreement was signed in November 2013, but the date was brought back to November 2014 due to some problems in the industry.’’

    Speaking during a stakeholders’ forum in Lagos, he said EKEDC is customer-centric, adding that the firm is doing its best to solve the metering problems and provide electricity to its customers. “We operate an open-door policy, as evident in the ways and manners we listen to our customers and attend to their needs after we have investigated their claims.  We have introduced a number of measures in order to satisfy our customers. They include providing meters, transformers and other equipment to them,” he added.

  • CBN acquires 62, 021 meters for power firm

    CBN acquires 62, 021 meters for power firm

    The Central Bank of Nigeria (CBN) yesterday in Kano launched the acquisition of 62, 021 meters for distribution to customers of Kano Electricity Distribution Company (KEDCO) as part its N213billion intervention programme in the power sector meant to improve revenue generation.

    The Deputy Head, Infrastructure Finance Office, CBN Development Finance Department, Elder Boma Banebo told reporters that the unveiling of the initiative was designed for CBN Nigeria Electricity Market Stabilisation Facility made to help DisCos to acquire metres for power consumers.

    He said the intervention was part of CBN’s commitment to reach out to stakeholders in finding lasting solution to the epileptic power supply to its numerous customers.

    “The CBN is expected to provide a banking sector led intervention to provide liquidity to settle legacy gas debts and computed revenue shortfalls, which would be utilised for permitted expenditure under certain agreements,” he said.

  • Ikeja Electric eyes installation of 15,000 meters monthly

    Ikeja Electric eyes installation of 15,000 meters monthly

    Ikeja Electric has started roll out of smart meters under its metering programme called Advanced Meter Infrastructure (AMI) that targets installation of 300,000 meters over the next three years.

    Its Chief Executive Officer, Mr. Abiodun Ajifowobaje said the roll out represents a remarkable step in the company’s quest for redefining service delivery in the sector. “This development resonates with our new spirit, new drive and new energy identity, as we strive to create value for our customers,” he added

    Ajifowobaje told reporters yesterday in Lagos that the meter roll out started in September with the installation of 6000 meters after the successful completion of the pilot scheme of the advanced meter installation phase which began in June this year.

    He said the power firm is set to commence  the second phase of the project; the mass roll out of the meters. These meters are designed to enhance efficient energy usage and transparent billing in real time, he added.

    According to him, the company aims to install 10,000 meters this month, and will be able to attain the peak monthly installation of 15,000 meters by December.