FCCPC engages NERC, DisCos on prepayment meter phase-out to protect electricity consumers

*Nigeria’s Federal Competition and Consumer Protection Commission engages electricity industry stakeholders to address consumers’ concerns about the imminent phase-out of UNISTAR prepayment meters by Ikeja Electric, Eko Electricity Distribution Company, and nine other electricity Distribution Companies towards ensuring transparent and accountable metering process while protecting power consumers

Gbenga Kayode | ConsumerConnect

Sequel to a barrage of complaints over the power providers’ recent move for a system upgrade, the Federal Competition and Consumer Protection Commission (FCCPC) has said it is addressing the ongoing concerns surrounding the phase-out of UNISTAR brand of prepayment electricity meters by the Ikeja Electric, Eko Electricity Distribution Company (EKEDC), and other electricity Distribution Companies (DisCos) in Nigeria.

ConsumerConnect reports the recent announcements, especially by Ikeja Electric and EKEDC, indicated that the UNISTAR prepayment meters, first deployed over a decade ago, would no longer be supported from November 14, 2024, due to technological upgrades and the Token Identifier (TID) rollover issue in the power ecosystem.

Some Unistar prepayment electricity meters

In view of the unease the DisCos’ announcements have generated among electricity consumers in recent times, the FCCPC, in a statement Tuesday, October 22, noted the market regulatory Commission had “observed rising anxiety among consumers over potential financial burdens, particularly whether they will be required to cover the cost of replacement meters.”

Protecting electricity consumers to ensure transparent metering process

The market regulatory Commission has affirmed its intervention is rooted in its mandate, pursuant to Sections 17(j), (l) (s), 116 (2), 124, 125, 138 and 155 of the Federal Competition and Consumer Protection Act (FCCPA) 2018.

The FCCPC also said further concerns related to the possibility of consumers’ being placed on “arbitrary estimated billing” during the ongoing transition, which would violate existing rules.

Ondaje Ijagwu, Director of Special Duties and Strategic Communication at FCCPC, stated: “These concerns have been worsened by insufficient communication from the DisCos about the phase-out process, leading to uncertainty and distrust.”

On strategic stakeholder engagements with NERC, power DisCos, others

The FCCPC also said: “In line with its mandate to protect consumers and promote fairness in the Nigerian marketplace, the FCCPC is actively engaging key stakeholders, including the Nigerian Electricity Regulatory Commission (NERC), Nigerian Electricity Management Services Agency (NEMSA), and the 11 DisCos operating in the West African country.

“The goal is to make the metering process transparent and accountable while protecting consumer interests.”

Ijagwu as well disclosed the FCCPC is initiating discussions with Ikeja Electric and other stakeholders to clarify “the phase-out process, and ensure that DisCos bear the cost of replacing phased-out meters, without imposing extra charges on consumers.”

The statement further noted: “The Commission will also work to ensure that DisCos comply with regulatory guidelines, preventing consumers from being unfairly charged or placed on estimated billing.

“Additionally, the FCCPC will ramp up consumer education on their rights, especially regarding metering and electricity billing, to prevent exploitation.”

The Commission restated its commitment to preventing any disadvantage to electricity consumers during this meter upgrade.

According to FCCPC, this intervention is in line with President Bola Tinubu’s “Renewed Hope” agenda, aimed at ensuring fair treatment for Nigerian consumers and access to essential services like electricity.

“The Commission will continue to advocate for Nigerian consumers, and ensure that service providers, including DisCos, act in a consumer-friendly, fair, and transparent manner,” the FCCPC Director of Special Duties and Strategic Communication added.

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