FCCPC enjoins DISCOs to ensure transparent meter replacement amid consumer concerns
FCCPC
Abdullateef Fowewe
The Federal Competition and Consumer Protection Commission has called on electricity distribution companies (DISCOs) to engage consumers before categorising them into billing bands and to strictly adhere to regulations regarding unmetered consumers.
During a stakeholders’ meeting in Abuja, FCCPC Executive Vice Chairman Tunji Bello emphasised the need for transparency in the replacement of Unistar prepaid meters, which are set to be phased out by November 14, 2024.
Dailyeconomy obtained this in a statement on Tuesday by FCCPC.
According to the statement Bello highlighted ongoing issues such as inaccurate billing and inadequate customer service, urging DISCOs to halt the replacement process until compliance with regulatory guidelines is ensured.
The statement reads, “Citing noncompliance 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.
“During the meeting, Mr. Bello highlighted significant issues facing electricity consumers, from billing inaccuracies to inadequate customer care. Mr. Bello noted that systemic inefficiencies and a culture of impunity among some service providers have intensified these issues, leading to the routine exploitation of consumers. He expressed concern over practices that require consumers to pay upfront for meters without reimbursement, a direct violation of the NERC Meter Asset Provider and National Mass Metering Regulations 2021. He also noted that DisCos frequently place consumers with faulty meters on estimated billing, which is prohibited under NERC’s regulations.
“Mr. Bello 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.”
According to the release, FCCPC directed that all meter replacement processes be conducted transparently, with costs borne by the DisCos and not passed on to consumers to prevent potential exploitation.
Bello stressed that FCCPC will enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing.
“The FCCPC also committed to enhancing consumer education on metering and billing practices to guard against potential exploitation by service providers. Mr. Bello concluded by expressing appreciation for the collaborative efforts of NERC and NEMSA in building a transparent, accountable, and consumer-centered electricity sector. He reaffirmed FCCPC’s dedication to enforcing all relevant consumer protection laws within the electricity industry to uphold consumer rights and promote fair market practices,” it added.
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 NERC’s 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.
“The meeting addressed a recent announcement by one of the DisCos regarding the phase-out of the Unistar prepaid meter model, effective November 14, 2024, which has caused considerable anxiety among consumers,” the statement concluded.
