NERC insists on local content policy

The Nigerian Electricity Regulatory Commission (NERC) has said it would insist on its policy of only giving approval for electricity meters that have local content, or in cases where there was sufficient evidence that local manufacturers lacked the capacity to supply them.

Chairman of the Commission, Sam Amadi, said although the government has not banned the importation of electricity meters, “The leadership of NERC is strongly committed to promoting local content, because we want the growth in electricity sector to contribute to the improvement in job creation and household income as well as growth in the country’s economy”.

The decision in 2012 by the Commission to make local content obligatory for every operator in the Nigerian electricity market, the Chairman explained, was to ensure the continuous localization of employment, services and technology.

He said the imposition of restriction on certification of meter importation was to demonstrate NERC’s commitment to the local content obligation in metering of customers and the provision of other services in the industry.

“NERC demands that every electricity meter importer must produce proof that the distribution company that gives it supply order cannot source such number of meters from local manufacturers.

“In other words, as long as there is available supply from local manufacturers to meet demand by distribution companies, NERC will not approve importation of meters,” Mr Amadi said.

He said the clarification became necessary following recent complaints by local meter manufacturers about low patronage by the DISCOs, most of whom they accused of patronizing their foreign counterparts to the neglect of local industry.

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Mr. Amadi said the restriction would remain despite several pending applications from meters importers, including Chinese firms, requesting interim licenses for six months to enable them establish meter manufacturing plants in Nigeria.

Meanwhile, he said a committee has been set up to review allegations by some local meter manufacturers that DISCOs violated the local content policy by installing imported meters in place of locally manufactured ones.

On smart meters regulation, the Chairman said NERC has already received the draft document, pending public consultation to enable operators and the general public review and make their inputs towards the final approval by the Commission.

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