NERC, FCCPC Caution Discos Over Charging Customers for Meter Replacement

The Nigerian Electricity Regulatory Commission has warned electricity Distribution Companies to stop charging their customers for forceful migration to new meter models adding that it is their responsibility to replace such meters free of charge. The Federal Competition and Consumer Protection Commission (FCCPC) had earlier addressed concerns surrounding the phaseout of Unistar prepaid meters by Ikeja Electric Plc and other electricity distribution companies (DisCos), following widespread consumer complaints.

In a statement, the Nigerian Electricity Regulatory Commission said it was aware that some “Distribution Companies (DisCos) have instructed customers to apply and pay for replacement of faulty and obsolete meters within their franchise areas. This instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete End-use Customer Meters in the Nigerian Electricity Supply Industry.

“The Order clearly states that no customer with a meter should be forcefully migrated to estimated billing. If any customer’s meter is adjudged by any DisCo to be obsolete or faulty, it is the responsibility of the DisCo to replace the meter free of charge, provided that the fault was not caused by the customer.

“The Commission restates its commitment to protect customers’ interests and rights by ensuring compliance with established regulatory standards and enforcing regulatory penalties for non-compliance by its licensees.

Electricity customers were urged “to report cases of non-compliance to the Order by any DisCo to NERC.

On its part, the FCCPC noted in a statement: “Recent announcements by Ikeja Electric indicated that the Unistar prepaid meters, first deployed over a decade ago, will no longer be supported from November 14, 2024, due to technological upgrades and the Token Identifier (TID) rollover issue.

“ The FCCPC has observed rising anxiety among consumers over potential financial burdens, particularly whether they will be required to cover the cost of replacement meters. Further concerns relate to the possibility of consumers being placed on arbitrary estimated billing during this transition, which would violate existing rules.

“These concerns have been worsened by insufficient communication from the DisCos about the phase-out process, leading to uncertainty and distrust.

“In line with its mandate to protect consumers and promote fairness in the Nigerian marketplace, the FCCPC is actively engaging key stakeholders, including the Nigerian Electricity Regulatory Commission (NERC), Nigerian Electricity Management Services Agency (NEMSA), and the eleven (11) DisCos.

“The goal is to make the metering process transparent and accountable while protecting consumer interests. The FCCPC is initiating discussions with Ikeja Electric and other stakeholders to clarify the phase-out process and ensure that DisCos bear the cost of replacing phased-out meters, without imposing extra charges on consumers.

“The Commission will also work to ensure that DisCos comply with regulatory guidelines, preventing consumers from being unfairly charged or placed on estimated billing. Additionally, the FCCPC will ramp up consumer education on their rights, especially regarding metering and electricity billing, to prevent exploitation.

The FCCPC noted that it was “committed to preventing any disadvantage to consumers during this meter upgrade. This intervention is in line with President Bola Tinubu’s “Renewed Hope” agenda, aimed at ensuring fair treatment for Nigerian consumers and access to essential services like electricity.

The Commission will continue to advocate for Nigerian consumers and ensure that service providers, including DisCos, act in a consumer-friendly, fair, and transparent manner.

The statement was signed by Ondaje Ijagwu Director, Special Duties (& Strategic Communication) for: Federal Competition & Consumer Protection Commission.