By Jane Okafor, Abuja
ABUJA: The Federal Competition and Consumer Protection Commission (FCCPC) on Wednesday maintained that its directives to Ikeja and Eko DisCos to halt the installation of Unistar Meters for consumers still remain in force, warning that any violation will be met with stiff consequences.
FCCPC warned further that any violation of consumers rights regarding obsolete meters will also have stiff consequences in pursuant to Sections 17(j), (l) (s), 116 (2), 124, 125, 138 and 155 of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
The Daily Crucible reports that the FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr. Tunji Bello, had at a recent stakeholders’ meeting at the FCCPC headquarters in Abuja which was attended by representatives from the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), various electricity distribution companies (DISCOs) and Unistar Hitech Systems Limited to address pressing metering issues impacting Nigerian consumers, directed the Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDC) to immediately halt their replacement of Unistar prepaid meters in line with the NERC’s order.
During the meeting, 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, even expressing the concern over practices that require consumers to pay upfront for meters without reimbursement.
He declared this as 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.
And at the said meeting, he 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.
To prevent potential exploitation, FCCPC directed that all meter replacement processes be conducted transparently, with costs borne by the DisCos and not passed on to consumers.
Bello stressed that FCCPC would enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing.
He also restated the FCCPC’s commitment 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.
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 Daily Crucible reports that during the meeting, they 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.
According to Bello, the announcement lacked critical information regarding whether consumers would be liable for the replacement costs, raising fears that the transition could lead to arbitrary estimated billing and undue financial strain on consumers.
Following from this, the agency on Wednesday, November 13 through a release by the Director, Corporate Affairs, Ondaje Ijagwu, and seen by The Daily Crucible, said it remained unwavering in its commitment to safeguarding the rights of Nigerian consumers against unfair practices by service providers.
It, therefore, advised 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 the directives.
The agency stated, “The Federal Competition and Consumer Protection Commission (FCCPC) notes with concern recent rumours that its directive to Ikeja and Eko electricity distribution companies (IKEDC and EKEDC) to immediately cease all activities related to the planned replacement of Unistar meters may be flouted. The directive remains in full force, and any attempt by these DisCos to proceed in contravention of it will attract severe consequences.
“Contrary to recent rumours, the approval of new meter prices by the Nigerian Electricity Regulatory Commission (NERC) has no connection with the proposed replacement of Unistar meters by IKEDC and EKEDC. The planned replacement has been invalidated by both the FCCPC and NERC, and there is no indication that the affected DisCos have breached our directives.
“It is essential to clarify 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 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.
“Consumers are advised 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.”
