Planned Electricity Meter Replacement: FCCPC Warns DISCOs Against Imposing Additional Charges On Consumers

By our Reporter

In a bid to protect the rights of electricity consumers in the country, the Federal Competition and Consumer Protection Commission, FCCPC, has warned electricity distribution companies against imposing additional charges on consumers in the planned replacement of obsolete electricity metres nationwide.

The Executive Vice Chairman of FCCPC, Mr Tunji Bello gave the warning in Abuja during a Stakeholders’ Engagement on Electricity Meter.

Mr Tunji Bello who advised DISCOS to bear the replacement cost for their meters said FCCPC was committed to enforcing strict adherence to regulatory guidelines ensuring that the Consumers are neither unfairly charged or randomly subjected to estimated billings.

“Electricity should be reliable, accessible, and affordable. Unfortunately, the Nigerian electricity sector has long grappled with a range of consumer issues and from our analysis of consumer complaints, it is clear that electricity consumers routinely endure problems related to billing, metering, transformers, connections, disconnections, and customer service, among others” He said

In his words”Regrettably, many of these challenges, from billing inaccuracies to inadequate customer care, are human-made. They stem from systemic inefficiencies and a troubling culture of impunity among certain service providers and the Federal Competition and Consumer Protection Act (FCCPA) and current NERC regulations grant consumers rights, including rights to fair treatment and transparent billing. However, complaints reveal that consumers are often forced to pay upfront for meters without reimbursement, contrary to established guidelines under the NERC Meter Asset Provider and National Mass Metering Regulations 2021, which stipulate reimbursement through energy credits”.

” Furthermore, customers with faulty meters are randomly placed on estimated billing by some DisCos, a practice that is clearly prohibited by NERC and the disregard for robust regulatory frameworks, such as the NERC Meter Asset Provider and National Mass Metering Regulations 2021 and the Customer Protection Regulations 2023, by DisCos is unacceptable and will no longer be tolerated. While it is recognised that Nigeria faces power shortages, these shortages cannot justify systemic abuses against consumers” Mr Bello stated.

According to him, going forward, regulatory breaches in the industry will be met with immediate corrective action because the recent announcement by an electricity distribution company concerning the phase-out of the Unistar prepaid meter model with effect from November 14th, 2024 poses yet another challenge for consumers, who may face undue hardship if this transition is mishandled.

“As usual, the announcement was devoid of information on whether consumers will be required to cover the cost of replacing meters.snd the possibility of consumers being placed on arbitrary estimated billing during this transition is also a concern, as it would violate existing rules because this announcement has understandably caused widespread anxiety among consumers, who are already dealing with significant difficulties within and outside the electricity industry” the EVC of FCCPC explained

“For example, here is a desperate message from a troubled Ikeja Electric customer regarding this announcement:

“Good evening FCCPC? The exploitation of IKEDC on the change of meter is unacceptable. I have working meters in my house in GRA and they have given a deadline to change meters that ultimately belong to them without bearing some cost. To change the meters in my house will cost about N1M… [pls kindly intervene.] This is too much to bear at this difficult time.
Thank you.” (Name withheld”.

He stated that for the Federal Competition and Consumer Protection Commission (FCCPC), it is troubling to witness consumers being exposed to additional hardship, with minimal information provided by the DisCo regarding this transition. In response, the FCCPC has convened this meeting to engage with key stakeholders, including the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), the twelve (12) DisCos and the manufacturer of the Unistar prepaid meter model.

“Our objective is to ensure that every metering process remains transparent and accountable, prioritising the interests of consumers. At this meeting, we aim to clarify the phase-out process and advise DisCos to bear the replacement costs for their meters without imposing additional charges on consumers. The Commission is committed to enforcing strict adherence to regulatory guidelines, ensuring that consumers are neither unfairly charged nor randomly subjected to estimated billing” Mr Bello emphasized

He stressed that the engagement would also address broader issues surrounding metering in the electricity industry which includes:- non-reimbursement for meter purchases, delays in meter installation and repairs, estimated billing of customers with faulty meters, consumer exploitation by meter installers, token loading challenges, and inadequate customer service.

“Under this dispensation, and like ever before, the FCCPC is committed to the unbiased enforcement of all consumer protection regulations, including those within the electricity sector, particularly the directives of NERC and by virtue of Section 17(a) of the FCCPA, this Commission is mandated to “administer and enforce” consumer protection laws, ensuring fairness in market practices. This mandate reinforces our commitment to stand firmly with Nigerian consumers and hold service providers accountable” He said

“In a turn of events, Unistar Hi-Tech Meters clarified that their prepaid meters, which utilise Card Meter Technology, are upgradable and fully compatible with the Standard Transfer Specification (STS) Meter Technology currently used in distribution networks. This assertion by the manufacturers of the meters in question, along with related issues, warrants further scrutiny and I therefore encourage all stakeholders at this meeting to contribute constructively to finding sustainable solutions to these longstanding issues as the FCCPC will also intensify the education of consumers on their rights, particularly concerning metering and billing practices, to curb potential exploitation” Mr Bello added

In a remark, the Head, Consumer Engagement, Nigerian Electricity Regulatory Commission, NERC, Zubair Babatunde commended FCCPÇ for the Stakeholders’ meeting and promised NERC support to FCCPC towards safeguarding the rights of electricity consumers in the country.

On his part, the An Assistant Manager, Metering and Laboratory Service Department of Nigeria Electricity Management Services, NEMSA, Okeme Obiabo said it is the responsibility of DISCOs to provide meter to electricity consumers and equally promised his Agency’s partnership with FCCPC towards ensuring that electricity consumers are not shortchanged.

Representatives of DISCOs across the country who spoke at the Stakeholders’ Engagement pledged to respect the rights of electricity consumers in the discharge of their duties.