Federal Competition and Consumer Protection Commission (FCCPC) has directed Ikeja Electric and Eko Electricity Distribution Companies (DisCos) to discontinue the installation of Unistar prepaid meters for electricity consumers.
Furthermore, the Commission underscored the significance of engaging energy consumers in the categorization process into various bands and mandated rigorous adherence to industry regulations concerning the billing of unmetered consumers. This directive was conveyed by Tunji Bello, the Executive Vice Chairman and Chief Executive Officer of FCCPC, during a stakeholders' meeting held at the FCCPC headquarters in Abuja on Tuesday.
The meeting included representatives from the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), various electricity DisCos, and Unistar Hitech Systems Limited, all convened to discuss critical metering challenges affecting Nigerian consumers.
In response to noncompliance with NERC’s directives, the FCCPC ordered Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDP) to immediately stop the replacement of Unistar prepaid meters.
During the meeting, Bello addressed several pressing issues faced by electricity consumers, including billing discrepancies and insufficient customer service.
He pointed out that systemic inefficiencies and a prevailing culture of impunity among certain service providers have exacerbated these problems, resulting in the regular exploitation of consumers. He expressed concern over practices that compel consumers to pay upfront for meters without the possibility of reimbursement, which contravenes the NERC Meter Asset Provider and National Mass Metering Regulations 2021. Furthermore, he highlighted that DisCos often subject consumers with malfunctioning meters to estimated billing, a practice that is against NERC’s regulations.
Bello referenced a specific complaint received by the FCCPC from an Ikeja Electric customer, who voiced frustration over being required to replace a functioning meter at a considerable personal expense.
To mitigate the risk of exploitation, the FCCPC has mandated that all meter replacement activities be carried out with full transparency, ensuring that the costs are absorbed by the Distribution Companies (DisCos) rather than being transferred to consumers.
Mr. Bello emphasized that the FCCPC will rigorously enforce adherence to these regulatory standards to shield consumers from unjust charges and estimated billing practices.
Additionally, the FCCPC has pledged to improve consumer awareness regarding metering and billing procedures to protect against potential exploitation by service providers. Bello concluded by acknowledging the collaborative efforts of NERC and NEMSA in fostering a transparent, accountable, and consumer-focused electricity sector. He reiterated the FCCPC’s commitment to enforcing all applicable consumer protection laws within the electricity sector to safeguard consumer rights and encourage equitable market practices.
The FCCPC’s decision to halt the replacement process is a result of the DisCos’ failure to comply with NERC’s “Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry.” Both NERC and NEMSA have supported the FCCPC’s position on this matter.
According to the NERC’s Order, DisCos are required to prioritize metering for unmetered customers as part of the National Mass Metering Programme (NMMP) and adhere to specific guidelines for replacing faulty or outdated meters.
These guidelines stipulate that DisCos must inspect faulty meters and provide comprehensive details in the replacement notice, including the inspection date, the credentials of the inspecting officer, the identified issue, and the planned replacement date. Moreover, DisCos are forbidden from placing customers on estimated billing due to delays in meter replacement, as new meters must be installed immediately upon the removal of any faulty or obsolete unit.
During the meeting, a recent announcement from one of the DisCos regarding the discontinuation of the Unistar prepaid meter model, effective November 14, 2024, was brought to attention. This announcement has generated considerable apprehension among consumers.
The head of the FCCPC emphasized the absence of crucial information pertaining to consumer accountability for replacement costs within the announcement. This omission has raised concerns that the transition may lead to arbitrary billing estimations, potentially imposing undue financial burdens on consumers.