5 Months After 40% Increase, Metre Manufacturers Canvas New Pricing Policy Over Forex Crises

• The Association of Meter Manufacturers of Nigeria said the changes in forex has affected the sector
• As a result, it said that the continuous supply of metres to customers may be hampered if this continues
• It wants regulatory bodies to liberalise meter prices by enabling manufacturers to adjust to market conditions

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The Association of Meter Manufacturers of Nigeria (AMMON) has stated that changes in foreign exchange have adversely affected the sector's activities.

This came after the price of prepaid power metres increased following approval from the Nigerian Power Regulatory Commission (NERC) in September 2023.

Difficulty affecting metre supply

The union noted that the difficulties caused by changes in foreign exchange affect not just the Nigerian Electricity Supply Industry (NESI) but also the continued supply of meters to them, according to a The Nations report.

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“As the demand for meters continues to grow, the association emphasises the urgent need for regulatory measures to address the issue of a fixed meter price, especially when all input costs are affected by increasing inflation and foreign exchange movements. This attention is urgently required to ensure the seamless provision of meters across the nation,” AMMON said in a statement at the weekend."

AMMON offers recommendations

The body, however, recommended in the statement that regulatory agencies work with the Nigerian Electricity Management Services Agency (NEMSA) to establish affordable meter specifications that meet NESI regulations.

The group believes it can help set standards that support affordability without sacrificing quality and dependability by collaborating closely with NEMSA.

The organisation added that considering its stance on the forex situation as it relates to the meter manufacturing sector will guarantee end customers' access to dependable and reasonably priced electricity meters and promote the industry's sustainability.

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To ensure a consistent supply of meters, AMMON consequently urged regulatory bodies to enable liberalising meter prices by allowing the manufacturers to adjust to market conditions.

The association said:

“If this action is taken, it will ensure the continued and uninterrupted supply of meters to meet the nation’s growing demand for reliable electricity services, barring the short gap already experienced.

“Besides, it is our belief that these proposed measures will contribute to a more robust and resilient electricity metering ecosystem,” the Association said, reassuring that it remains committed to supporting the nation’s power sector.

“If urgent action is not taken to prioritise and expedite measures to address the impending shortage, which is occasioned by a three-month and growing supply chain gap by our estimates.

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Legit.ng reported that the Federal Government, in partnership with the Central Bank of Nigeria, has announced plans to support the domestic production of four million prepaid meters.

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This is contained in the '2022 Market Competition Report' published by the Nigerian Electricity Regulatory Commission.

At the same time, the federal government secured a loan of N120 billion from the World Bank to acquire 1.25 million prepaid meters at a reduced consumer price.

Source: Legit.ng