By Tochukwu Bliss, Abuja
The Federal Competition and Consumer Protection Commission (FCCPC), yesterday directed the Ikeja Electric
and Eko Electricity Distribution Company (EKEDC), to immediately halt their replacement of Unistar prepaid meters.
The Commission cited noncompliance with the Nigerian Electricity Regulatory Commission (NERC’s) regulation: “Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry.”
The FCCPC also urged electric distribution companies (DisCOs) to carry energy consumers along before classifying them into bands, and to adhere strictly to industry regulations on billing unmetered consumers, according to the Commission’s statement.
The directive was issued by the FCCPC’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, at a stakeholders’ meeting held at the Commission’s headquarters in Abuja.
The meeting was said to have been attended by representatives from the NERC, the Nigerian Electricity Management Services Agency (NEMSA); DisCos; and Unistar Hitech Systems Limited, to address pressing metering issues impacting Nigerian consumers.
Systemic inefficiencies and a culture of impunity among some service providers have intensified these issues, leading to the routine exploitation of consumers.
Consumer exploitation
During the meeting, Mr. Bello was quoted as highlighting significant issues facing electricity consumers, from billing inaccuracies to inadequate customer care.
He noted that systemic inefficiencies and a culture of impunity among some service providers have intensified these issues, leading to the routine exploitation of consumers.
He expressed concern over practices that require consumers to pay upfront for meters without reimbursement, a direct violation of the NERC Meter Asset Provider and National Mass Metering Regulations 2021.
Mr. Bello noted further that DisCos frequently place consumers with faulty meters on estimated billing, which is prohibited under NERC’s regulations.
He cited an example of a complaint received by FCCPC from an Ikeja Electric customer, who had expressed frustration at being asked to replace a functioning meter at a significant personal cost.
To prevent potential exploitation, FCCPC directed that all meter replacement processes be conducted transparently, with costs borne by the DisCos and not passed on to consumers.
Mr. Bello stressed that FCCPC will enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing.
The FCCPC also committed to enhancing consumer education on metering and billing practices to guard against potential exploitation by service providers.
Mr. Bello concluded by expressing appreciation for the collaborative efforts of NERC and NEMSA in building a transparent, accountable, and consumer-centered electricity sector.
He reaffirmed FCCPC’s dedication to enforcing all relevant consumer protection laws within the electricity industry to uphold consumer rights and promote fair market practices.
The NERC’s Order mandates that DisCos must prioritise metering for unmetered customers under the National Mass Metering Programme (NMMP) and follow strict guidelines for replacing faulty or obsolete meters.
These guidelines require DisCos to inspect faulty meters and provide detailed information in the replacement notice, including the inspection date, the inspecting officer’s credentials, the identified fault, and the scheduled replacement date.
Furthermore, DisCos are prohibited from placing customers on estimated billing due to delays in meter replacement, as new meters must be installed immediately upon removing any faulty or obsolete unit.
The meeting addressed a recent announcement by one of the DisCos regarding the phase-out of the Unistar prepaid meter model, effective November 14, 2024, which has caused considerable anxiety among consumers.
Mr. Bello emphasised that this announcement lacked critical information regarding whether consumers would be liable for the replacement costs, raising fears that the transition could lead to arbitrary estimated billing and undue financial strain on consumers.
