FCCPC Warns DisCos Against Metering Abuses
The Executive Vice Chairman/Chief Executive Officer of the Federal Competition and Consumer Protection Commission, Mr. Tunji Bello, has called on Electricity Distribution Companies in Nigeria to prioritise the rights of consumers in electricity metering processes.
Bello opened the session by stressing the importance of safeguarding consumers’ rights in the electricity sector.
He highlighted systemic inefficiencies that continue to plague Nigerian consumers, particularly in relation to metering and billing practices.
“We are here today because consumers’ rights in metering must be a priority.
“The recent challenges, especially the arbitrary billing practices and the lack of transparency in metering are unacceptable. We must ensure that consumers are treated fairly and that all practices adhere to the guidelines set out by regulatory bodies like the Nigeria Electricity Regulatory Commission,” Bello said.
The meeting addressed mounting concerns over metering issues, including billing discrepancies and the handling of obsolete meters, particularly in the wake of recent announcements by DisCos.
Bello’s remarks came as the FCCPC addressed growing concerns over the phase-out of the Unistar prepaid meter model, which could potentially create additional hardships for consumers.
The transition, set to begin on November 14, 2024, has raised alarms about whether consumers will be required to bear the costs of replacing these meters or whether they will be subjected to estimated billing practices, which are prohibited by the NERC.
Bello stated that this shift was sharply criticized by one distressed Ikeja Electric customer, who wrote to the FCCPC, saying, “Good evening FCCPC? The exploitation of IKEDC on the change of meter is unacceptable. To change the meters in my house will cost about N1M. Please kindly intervene.”
In response to the situation, Bello emphasised that DisCos must bear the costs of replacing meters without imposing additional charges on consumers, especially during this transition phase. “Consumers should not have to pay for meters that are outdated or no longer in use,” he said.
“The regulations are clear: any transition must be done without burdening the consumer,” he added.
The FCCPC further condemned the widespread practice of placing consumers with faulty meters on estimated billing, describing it as a violation of NERC’s regulations.
“DisCos have no excuse for failing to follow proper procedures, including reimbursement for meter purchases and ensuring faulty meters are promptly replaced,” Bello added.
“We will not tolerate any disregard for the rules. Corrective actions will be immediate,” he said.
The meeting also provided a platform for various stakeholders to voice their positions.
An assistant manager at the Nigerian Electricity Management Services Agency, Okeme Obiabo stressed the importance of following due process for meter replacement.
“We’ve been addressing obsolete meters, and distribution companies must adhere to the procedures for replacing them.
“Meter testing and certification are essential, and DisCos are responsible for carrying out these replacements and ensuring that faulty meters are replaced promptly,” he added.
The head of consumer engagement at NERC, Zubair Babatunde, reiterated the commission’s commitment to consumer protection, specifically regarding the replacement of obsolete meters.
“Obsolete meters must not only be replaced but must not be removed without immediate replacement,” Babatunde said.
He added, “The consumer should not bear the cost of replacing meters simply because they are…
