40% Increase In Price Of Electricity Meters By NERC, Not Coming As A Surprise

0

 

….may further increase the huge metering gaps in the electricity market

 

The 40% increase in the price of Single Phase Pre Paid Meters and 3 Phase Pre Paid Meters in Nigeria is not coming as a surprise considering the fact that the importers of meters and meters assembling plants have over the last 12 months been making serious cases for upward review of Pre Paid Meters.

They said considering the fact that they now source Forex from parallel market, the recent increase in Customs Imports Duties / Customs charges, devaluation of the Naira and other multiple charges by different government agencies at ports they needed an upward review of the charges.

The importers of the Pre Paid Meters and Meters Assembling Plants are of the view that the appropriate Price of Single Phase Pre Paid Meters should be Nine Thousand Naira ( N90,000 .00k ) and that 3 Phase Pre Paid Meters should ordinarily be selling for One Hundred Sixty Thousand Naira or more.

That has been the position or views of the Meters Assembling plant owners and major Importes of semi finished Pre Paid Meters in Nigeria.

 

The question is, is it the duties of electricity consumers/end-user customers in the electricity market to provide pre paid meters or fund the deployment of Pre Paid Meters meant to enhance cost recovery,  energy accountability and returns on Investment for electricity distribution companies or distribution Licensees?

The service level agreement ( SLA ) is a Contractual Obligations undertaken by the Investors in the electricity sector Pre Privatisation era.The answer is No. Capital No!!! ..

The Service Level Agreement is a strict obligation pledged by the electricity distribution companies / distribution licensees as a condition precedent to the Acquisition of the Licensees.

The business of provisions of Pre Paid Meters by the electricity distribution companies as a means to guarantee revenue efficiencies and collection efficiencies ordinarily should have been the business between the distribution Licensees and the meters assembling plants or vendors in electricity meters, be it maximum demand meters, Single Phase Pre Paid Meters and Three Phase Pre Paid Meters.

Metering devices in the prevailing circumstances are Electro-Mechanical Devices designed to provide accuracy of measurement of electricity usage and also aimed at providing energy accountability.

The role of the Nigerian Electricity Management Services Agency has been that of Routine Test, Type Test, Radom Test, Certification,  Verification and Test.

As good as these may be, most of the electricity meters in the electricity market are not being submitted nor subjected to Standard Organisation of Nigerian  for Primary Lab designed to carry out

100 % calibration of electricity meters using the Global Standard of Metrology Benchmarks needed in 100% calibration of Pre Paid Meters, and Post Paid Meters be it Single Phase, Three Phase Meters and Maximum Demand Meters.

In the absence of 100% calibration of post-paid meters and pre-paid meters by Standard Organisation of Nigeria ( not random Testing, Certification,  Verification, Type Test, Routine Test),

There are higher probability of serious threats of any post-paid meters and pre-paid meters in the market that are not properly calibrated.

The responsibility of calibration of pre-paid meters rests squarely with  Standard Organisation of Nigeria, and not with meter assembling plants or meter importers, not that of the Distribution Company/ Distribution Licensees or any other Institutions.

Refund of payment/Funding of acquisition of pre-paid meters:

Nigerian Electricity Regulatory Commission in furtherance of the Services Level Agreement ( SLA) undertaken provided by  distribution  companies should put in place firm commitments/framework that will guarantee refunds of funding of acquisition or

purchase of pre-paid meters by third parties/ end users customers/electricity consumers as it were in the electricity market

In the meantime, Nigerian Electricity Regulatory Commission and the Electricity Distribution Companies/ Distribution Licensees,  the meters assembling plants should work out modalities that would make it possible for electricity consumers/ end users customers to be able to acquire already  calibrated electricity meters at designated points under strict supervision and synergy by Standard Organisation of Nigeria,  Nigerian Electricity Management Services Agency,  Electricity Distribution Licensees,  Meters Assembling Plants and Representatives of End Users Customers

Considering the low income or disposable incomes of an average Nigerian end-user customers, it might be difficult for many to afford the new rates without a mechanism for refunds via electricity token, and this may further increase the huge metering gaps in the electricity market

Kunle Kola OLUBIYO  President, Nigeria Consumer Protection Network,

Leave a Reply

Your email address will not be published. Required fields are marked *