FCCPC tasks DisCos on metering, Band migration to protect Nigerian electricity consumers

*The Federal Competition and Consumer Protection Commission directs Ikeja Electric, Eko DisCo to halt Unistar meter installation, urging the DisCos to engage energy consumers before classifying them into Bands, to protect consumers from arbitrary charges and estimated billing

Isola Moses | ConsumerConnect

The Federal Competition and Consumer Protection Commission (FCCPC) has urged Nigerian electricity Distribution Companies (DisCos) to carry energy consumers along before classifying them into Bands, and also adhere strictly to industry regulations on billing unmetered consumers.

Mr. Tunji Bello, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of FCCPC, issued the directive at a stakeholders’ meeting held Tuesday, November 5, 2024, at the FCCPC Headquarters, in Abuja, FCT.

ConsumerConnect reports the Commission disclosed the representatives from the Nigerian Electricity Regulatory Commission (NERC), Nigerian Electricity Management Services Agency (NEMSA), various electricity Distribution Companies (DisCos), and Unistar Hitech Systems Limited attended the meeting to address pressing metering issues impacting power consumers in the country.

Citing noncompliance with NERC’s order, FCCPC in a statement Tuesday, said the Commission had directed Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDC) to immediately halt their replacement of Unistar prepayment meters as regards the November 14 deadline earlier announced to electricity consumers.

Bello, in the meeting also highlighted significant issues facing electricity consumers.

He noted these range from billing inaccuracies to inadequate customer care.

Systemic inefficiencies and a culture of impunity among some service providers have intensified these issues, leading to the routine exploitation of consumers, he stated.

The EVC/CEO of the market regulatory Commission further expressed concern over practices that require consumers to pay upfront for preoayy meters without reimbursement.

He asserted this practice is “a direct violation of the NERC Meter Asset Provider and National Mass Metering Regulations 2021”.

Bello explained that DisCos frequently place consumers with faulty meters on estimated billing, a practice which is prohibited under NERC’s regulations in the power ecosystem.

He equally 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.

The Commission stated: “To prevent potential exploitation, FCCPC has directed that all meter replacement processes be conducted transparently, with costs borne by the DisCos and not passed on to consumers.”

Bello stressed that FCCPC would enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing.

The FCCPC also restated its commitment to enhancing consumer education on metering and billing practices to guard against potential exploitation by service providers.

Bello, therefore, expressed appreciation for the collaborative efforts of NERC and NEMSA at building a transparent, accountable, and consumer-centered electricity sector.

He as well reaffirmed FCCPC’s dedication to enforcing all relevant consumer protection laws within the electricity industry to uphold consumer rights and promote fair market practices.

How DisCos are violating prepayment meter replacement  regulation, by FCCPC

The FCCPC’s directive to discontinue the replacement process stems from the DisCos’ non-compliance 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 endorsed the FCCPC’s stance on the issue, the statement noted.

The Commission stated the NERC 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,” it stated.

On DisCos’ announced phase out of Unistar prepayment meters

The Commission at Tuesday’s meeting also addressed a recent announcement by IKEDC and Eko DisCo regarding their planned phase-out of the Unistar prepaid meter model, effective November 14, 2024, which has caused considerable anxiety among electricity consumers in Nigeria.

Bello, however, emphasised that their announcements on the Unistar meters “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.”

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