By Steve Agbota
The Meter Asset Providers (MAPs) has said that encumbrances in the clearing procedure of the Nigeria Customs Service (NCS) have been causing setback for distribution of prepaid meters under the National Mass Metering Programme (NMMP) scheme of the Federal Government.
MAPs in a communiqué made available to newsmen at the end of its meeting in Lagos, said the power sector is currently suffering huge metering gap, adding that closing the metering gap would improve revenue collection, transparency, payment discipline, and improve customer satisfaction.
However, the metering providers accused Customs clearing bottlenecks, implementation of the 35 per cent levy waiver granted by the President on fully built prepaid meters and improvements to the industry structure for accelerated prepaid meter deployment.
Meanwhile, about 17 meter providers at the meeting recommended the removal of bottlenecks in the Customs clearing process and urged Customs to create dedicated desks/teams at the various ports to fast track the clearing of prepaid meters and components from the ports to improve on delivery timelines.
“Further, it is crucial that Federal Ministry of Finance and Customs harmonise and provide clarity on HS codes for uniform assessment as relates to meters, meters parts, components and accessories.
“Change in the modalities for the implementation of the presidential waiver of the 35 per cent levy on fully built prepaid meters and extension up to December 2022. The list of all NERC approved MAPs benefitting from the levy waiver should be made available by NERC/FMF to the Customs to circulate to their commands, thus removing the requirement from MAPs to individually apply to NERC each time,” they added.
The metering providers said the timeframe for presidential waiver should be further extended to December 2022, as they highlighted other key challenges to smooth distribution of prepaid meters to include: fixed meter pricing in a regime of depreciating foreign exchange rates and unavailability of foreign exchange from CBN.
MAPs also noted the disruptions in global supply chain resulting from the COVID-19 pandemic, with an attendant increase in international prices of raw materials and components required in the manufacture and assembly of prepaid meters.
However, MAPs commended the Federal Government for the various interventions to close the metering gap such as the Meter Asset Provider (MAP) regulations and the implementation of the National Mass Metering Programme (NMMP).
The group however recommended a price review, noting that an upward review of the current price of prepaid meter by NERC is important, in view of rising inflation, continued upward movement of foreign exchange rates, associated increases in customs costs, increase in container freight costs, and the disruptions in the international supply chain, leading to a global increase in the prices of raw materials and components for the manufacture of prepaid meters.