Nigerian electricity DisCos increase prepayment meter prices amid Unistar meter replacement issues

*The Nigerian electricity Distribution Companies jack up prices of prepayment meters months after a similar move, to address protracted issues around the supply and pricing of meters in the power ecosystem in the West African country

Gbenga Kayode | ConsumerConnect

Sequel to the Nigerian Electricity Regulatory Commission’s (NERC) recent deregulation of meter prices under the Meter Asset Provider (MAP) scheme for electricity consumers the 11 electricity Distribution Companies (DisCos) have increased prepayment prices, months after a similar move in the West African country.

ConsumerConnect reports the power providers, according to statements posted on the DisCos social media platforms, noted the new price regime would become effective from Tuesday, November 5, 2024.

Mr. Tunji Bello, Executive Vice-Chairman and CEO of FCCPC

The DisCos have announced the price of a single-phase metre has increased from about N117,000 to about N149,800.

Why latest meter price hikes?

The price hikes are dependent on the DisCo and the meter vendor in the power ecosystem in Nigeria.

However, it was gathered the latest price hikes were targeted at addressing the burning issues around supply and pricing of prepayment meters in the sector.

In view if this development, DisCos and meter vendors can now fix prices based on the economic realities in the country, helping investors recover their money and ensuring the availability of the metres, according to report.

DisCos’ new prepayment meter price details

Checks also indicated the Eko Electricity Distribution Company (EKEDC), in a public notice posted on its verified social media account Tuesday, November 5, 2024, fixed the price of its single-phase metre between N135,987.5 and N161,035 while the company stated the cost of a three-phase meter between N226,600 and N266,600.

The EKEDC said: “Dear Valued Customer, in line with NERC’s Order on the Deregulation of Meter prices for the MAP Scheme, kindly see the new prices for single and three-phase meters (VAT inclusive) for November — Eko Electricity Distribution Company (@EKEDP) November 5, 2024.

Likewise, the Ibadan DisCo (IBEDC), in a message also informed power customers to pay from a range of N130,998 and N142,548 for a single-phase metre and N226,556.25–N232,008 for a three-phase metre.

The company wrote: “Dear Valued Customer, Please see the approved New Meter Prices. — Ikeja Electric (@IkejaElectric) Wednesday, November 6, 2024.

“The Abuja DisCo said the price range for a single-phase metre is from N123,130.53–N147,812.5 and N206,345.65–N236,500 for three-phase metres.”

Similarly, the Kano Electricity Distribution put N127,925–N129,999 as the price range for a single-phase metre while three-phase metres cost between N223,793–N235,425.

The Kaduna DisCo put its price for a single-phase metre between N131,150 and N142,548.94 and N220,375—N232,008.04 for three-phase metres: Map Meter Prices — Kaduna Electric (@KadunaElectric) November 6, 2024

The Nigerian Electricity Regulatory Commission (NERC) announced the deregulation of meter prices under the Meter Asset Provider (MAP) scheme for end-user customers.

FCCPC warns DisCos against violating industry regulations on meter replacements, billing unmetered consumers

In a move to protect power consumers in the ecosystem, the Federal Competition and Consumer Protection Commission (FCCPC), in the week, had urged electricity Distribution Companies 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, at the FCCPC Headquarters, in Abuja, FCT.

The Commission, in a statement, also 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.

Market regulator directs Ikeja Electric, EKEDC to halt replacement of Unistar meters

Citing noncompliance with NERC’s order, FCCPC Tuesday said it had directed Ikeja Electricity Distribution Company and Eko Electricity Distribution Company 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.

According to the FCCPC Chief Executive, 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 FCCPC further expressed concern over practices that require consumers to pay upfront for prepayment 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: We’re committed to protecting consumers against potential exploitation by DisCos

Bello, in the statement, stressed the 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.

The Commission at Tuesday’s meeting as well stated it 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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