FCCPC warns DisCos of ‘stiff penalties’ over violation of consumer rights in Unistar meter replacements

*The Federal Competition and Consumer Protection Commission clarifies the Ikeja and Eko DisCos cannot withdraw or replace electricity consumers’ Unistar prepayment meters unless they fully comply with the Nigerian Electricity Regulatory Commission’s Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry

Gbenga Kayode | ConsumerConnect

Sequel to its earlier directive on meter replacements, the Federal Competition and Consumer Protection Commission (FCCPC) has expressed its concern over recent rumours that the Ikeja electricity Distribution Company (IKEDC) and Eko electricity Distribution Company (EKEDC) may be flouted the mandate to immediately halt all activities related to the planned replacement of Unistar meters in Nigeria.

The FCCPC, Wednesday, November 13, 2024, stated the Commission’s directive to the affected DisCos is pursuant to Sections 17(j), (l) (s), 116 (2), 124, 125, 138 and 155 of the Federal Competition and Consumer Protection Act (FCCPA) 2018.

 

ConsumerConnect reports the Ikeja Electricity Distribution Company and Eko Electricity Distribution Company had announced to power consumers their planned replacement of Unistar brand of prepayment meters by Thursday,  November 14, 2024.

Ondaje Ijagwu, Director of Corporate Affairs at FCCPC, in the statement Wednesday, however, said the Commission’s directive “remains in full force, and any attempt by these DisCos to proceed in contravention of it will attract severe consequences.”

The market regulatory Commission also said contrary to recent rumours, the Nigerian Electricity Regulatory Commission’s (NERC) approval of new prepayment electricity meter prices has no connection with the proposed replacement of Unistar meters by IKEDC and EKEDC within their networks.

The FCCPC further explained the planned meter replacement has been invalidated by both the FCCPC and NERC, and there is no indication that the affected DisCos have breached the FCCPC’s directives in this regard.

It as well clarified that Ikeja and Eko DisCos cannot proceed with the withdrawal or replacement of the Unistar meters unless they fully comply with NERC’s Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry (Order No. NERC/246/2021), the Commission also stated.

The FCCPC Director of Corporate Affairs asserted:” The order mandates that meter replacements must be prompt, without disrupting service and at no cost to the consumer; and ensuring that consumers are not subjected to estimated billing due to delayed installations.

“The FCCPC’s position remains clear: non-compliance with these directives by Ikeja and Eko DisCos will not be tolerated.

“Any breach of this directive will attract stiff penalties in line with the provisions of existing consumer protection laws.”

The Commission urged electricity consumers to contact the FCCPC on the Commission’s line, 08119877785, dedicated to electricity issues, should they encounter any attempts by Ikeja or Eko DisCos to disobey this directive.

“The FCCPC remains unwavering in its commitment to safeguarding the rights of Nigerian consumers against unfair practices by service providers,” noted the market regulatory Commission.

On violating industry regulations on meter replacements, billing unmetered consumers

It is recalled that in a move to protect power consumers in the ecosystem, the Federal Competition and Consumer Protection Commission (FCCPC), last 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.

FCCPC 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.”

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