This requirement is to keep out moister, and water from entering a switch gear or panel board. I have seen where services that where ran up the side of a pole from the utility have not been sealed and when it rained water came out of the meter can. If I see it from the utility I try to get them to put duct seal or some other kind of sealant in the pipe. The pipes don’t have to be run into a piece of switchgear or other equipment to be sealed off.
Till next time work safe and be safe.
Jake