The Abuja Electricity Distribution Companies (AEDC) has unfolded plans to invest a sum of N43billion to execute power projects in four states. This was even as it disclosed that the 45 percent duty placed on the importation of prepaid meters is a threat to availability.
AEDC Managing Director (MD), Engr. Ernest Mupwaya made the disclosure in Abuja yesterday, at an interactive session between the AEDC Executive Management Team and the Media on the proposed tariff review.
According to the MD, the company required the sum, to guarantee stable and reliable power supply to its customers. “A total of 92 projects (Technical and Non-Technical) to add 89MW, improve network visibility and flexibility capacity at a total cost of N43.02 billion is required,” he said.
He said the projects will span across Kogi, Nasarawa, Niger, and FCT. In a breakdown, he said, Abuja requires N31.3 billion investment with 57 projects, Kogi N2.3 billion with four projects to be executed, while Nasarawa N2.3 billion and Niger N5.5billion with 12 and 15 projects respectively in each state.
Meanwhile, the MD, while fielding questions on delay in meter installations, he said that the 45 percent import duty placed on the importation of meters was a threat to meeting the demand of customers despite the presence of the Meter Asset Providers(MAPS).
ALSO READ: Anti-smuggling: Joint border operation rakes in N135m in one month
Although he noted that the percentage was fixed to discourage importation of meters, thus promoting local manufacturers, they still could not meet the huge demand for the product.
In his explanations, he said the DisCo has three MAPs within the DisCo catchment area, stating that only one of the three, is a retail manufacturer while others are importers.
His words: “Import duty of 45 percent is a real threat but if you look on the other side it is put to promote the local industries on manufacturing meters but if the local industries cannot meet the huge volume of demand, there must be a different way of looking at it.
“For example, the import duty can be staggered to say in year one, 5 percent on import duty, year two 10 percent, year three 15 percent, etc so that by year four when everybody is metered there would be an import duty to prevent importation.”
He noted that this has affected the pace at which the MAPs are meeting demands saying:” We have three Meter Asset Providers. One is a retail manufacturer while others are importing meters. I think for a fact, the import duty issue of 45 percent, if not addressed, it would affect the pace of those importing meters but for the manufacturers, the pace is very good. There are days when we have installed over 1000 meters in a day but in terms of capability, that would be resolved.”
However, he said a total of 160, 832 meters has so far been installed under the company’s mass metering programme and CAPMI, adding that about 81, 533 customers has also been metered under the Meter Asset Provider (MAP) programme.
and then