The Federal Competition and Consumer Protection Commission (FCCPC) on Tuesday ordered Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDP) to immediately halt the replacement of Unistar prepaid meters due to their non-compliance with directives from the Nigerian Electricity Regulatory Commission (NERC).
This was disclosed in a statement posted via the Commission’s X page on Tuesday.
The Commission also urged electricity distribution companies (DISCOs) to engage with energy consumers before classifying them into bands and to strictly adhere to industry regulations when billing unmetered consumers.
The directive was issued by FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, at a stakeholders’ meeting held at the FCCPC headquarters in Abuja.
Representatives from NERC, the Nigerian Electricity Management Services Agency (NEMSA), various electricity distribution companies (DISCOs), and Unistar Hitech Systems Limited attended the meeting, which aimed to address pressing metering issues affecting Nigerian consumers.
Non-Compliance
According to the statement, Bello highlighted significant challenges facing electricity consumers, including billing inaccuracies and inadequate customer care.
- He cited an example of a complaint received by the FCCPC from an Ikeja Electric customer who was frustrated about being asked to replace a functioning meter at a significant personal cost.
- To prevent potential exploitation, the FCCPC directed that all meter replacement processes be conducted transparently, with costs borne by the DISCOs and not passed on to consumers.
- Bello emphasized that NERC’s order mandates DISCOs to prioritize metering for unmetered customers under the National Mass Metering Programme (NMMP) and to follow strict guidelines when replacing faulty or obsolete meters.
“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 have endorsed the FCCPC’s stance on this issue,” the statement reads.
“Citing non-compliance with NERC’s order, FCCPC directed Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDP) to immediately halt their replacement of Unistar prepaid meters,” the statement continued.
More Insight
Mr. Bello further noted that systemic inefficiencies and a culture of impunity have led to the routine exploitation of consumers.
- He expressed concern over practices that require consumers to pay upfront for meters without reimbursement, describing this as a direct violation of the NERC Meter Asset Provider and National Mass Metering Regulations 2021.
- He also explained that DISCOs often place consumers with faulty meters on estimated billing, which is prohibited under NERC’s regulations.
“Mr. Bello stressed that FCCPC will enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing,” the statement added.
- The FCCPC is also committed to enhancing consumer education on metering and billing practices to prevent potential exploitation by service providers.
- Regarding compliance, Bello maintained that the NERC guidelines require DISCOs to inspect faulty meters and provide detailed information in the replacement notice, including the inspection date, the credentials of the inspecting officer, 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 after removing any faulty or obsolete unit,” the statement concluded.
- The meeting also addressed a recent announcement by one of the unnamed DISCOs regarding the phase-out of the Unistar prepaid meter model, effective November 14, 2024.
- Mr. Bello emphasized that the announcement lacked critical information, particularly regarding whether consumers would be liable for the replacement costs, raising concerns that the transition could lead to arbitrary estimated billing and undue financial strain on consumers.
The FCCPC is a body established by law to protect the rights of companies and consumers.
