On Wednesday, 13th August 2015, history was made and a significant milestone was achieved in the power sector with the presentation of samples of locally manufactured metres to President Muhammadu Buhari, by the permanent secretary, Federal Ministry of Power, Ambassador Godknows Ighali.
Technocrats in the power sector reckon that with these developments of locally made metres, there would be a significant growth in the Nigerian economy and also a reduction in the level of unemployment present in the country today.
The questions that currently linger in the minds of industry players is; Now that the made in Nigeria metres have been presented to Mr. President, what is next? How would this presentation of the metre translate to patronage of the local metre manufacturers by the local contents acts or policy with the federal government?
The different players in the entire value chain of the power sector have a role to play to make this very critical sector of the economy work for the good of all. For instance, the CBN has a big role to play in the interest of the economy by helping to ensure all the electricity distribution company patronise the local metre manufacturers.
The CBN could contribute by limiting forex allocation to electricity distribution companies to import these prepaid electricity metres which our indigenous metre manufacturers are able to produce with a far better hybrid quality when compared to some of the imported ones usually dumped in the Nigerian market.
Meanwhile, the regulatory body (NERC) also owes the nation the crucial duty to ensure that made in Nigeria metres meet international standard by ensuring periodic random sample testing of metres produced by these indigenous manufacturers through its agency, Electricity Management Service (EMS).
However, there is still a strong need for all stakeholders concerned, especially the supervising ministry (Ministry of Power) to take a second look at the functions of the DISCOs because it appears that the DISCOs have been saddled with the responsibility of purchasing metres and also distribution of bills (including estimated bills) to power consumers, whereas their primary function is to ensure that power gets to the transformer.
The DISCOs that are hitherto seen overwhelmed by combining the two responsibilities of distribution and marketing would now be more focused and single minded in their objective in order to deliver energy to consumers by supplying power from the transmission company to the transformer point, from which the marketing company would take it and distribute to the consumers.
As a matter of fact, the proposed electricity marketing companies would be expected to be autonomous and a separate business entity not to be owned either in part or full by the DISCOs.
If the proposition of the creation of electricity marketing companies is implemented, it would result in efficient distribution of power to the distribution point by the DISCOs. The marketing company on their own would ensure consumers are properly metered, appropriately billed and the power sector would move forward.
It is also important to note whether these local manufacturers would increase capacity through expansion drive that meets local demand for smart metres. This is very crucial because it would be counterproductive to stop importation of metre if the indigenous metres manufacturers cannot meet the local needs.
Another critical question to ask if truly we desire an efficient and effective power sector is how we are trying to institutionalise manufacturing of metres in Nigeria by not limiting it only to the few existing manufacturers. More investors should be encouraged to venture into electricity metre manufacturing to promote healthy competition which will be in the general interest of the country in terms of quality and product pricing.
- By Sunmbo Adio,
Lagos.