The Federal Competition and Consumer Protection Commission (FCCPC) has ordered the Ikeja Electricity Distribution Company (IKEDC) and the Eko Electricity Distribution Company (EKEDP) to immediately cease the replacement of Unistar prepaid meters, citing non-compliance with directives issued by the Nigerian Electricity Regulatory Commission (NERC). The directive, issued on Tuesday, seeks to ensure consumer protection and compliance with regulatory standards in the electricity sector.
The Commission made the announcement via a statement posted on its official X (formerly Twitter) page, underscoring that the two electricity distribution companies had violated industry regulations. This action follows growing concerns over the transparency and fairness of metering and billing practices by some service providers in the country.
As part of the directive, the FCCPC also called on all electricity distribution companies (DISCOs) to engage with energy consumers before classifying them into different billing bands. The Commission emphasized the importance of communication with customers and strict adherence to established industry regulations, particularly when it comes to billing unmetered consumers.
“The Commission urges electricity distribution companies to engage with energy consumers before classifying them into bands,” the FCCPC stated. “DISCOs must also ensure that they strictly follow industry regulations when billing unmetered consumers, especially with respect to estimated billing and meter replacements.”
Further details of the FCCPC’s order included a strong recommendation for enhancing consumer education regarding metering and billing practices. The aim is to empower consumers with information that can help prevent potential exploitation by electricity service providers. This focus on consumer awareness is seen as crucial to preventing unnecessary financial burdens on households.
Mr. Babatunde Bello, the Director-General of the FCCPC, added that the Nigerian Electricity Regulatory Commission’s guidelines are clear in regard to meter inspections and replacements. “The NERC guidelines require DISCOs to inspect faulty meters and provide detailed information in the replacement notice,” Bello said. “This should include the inspection date, the credentials of the inspecting officer, the identified fault, and the scheduled replacement date.”
The FCCPC also reiterated that electricity distribution companies are prohibited from placing customers on estimated billing simply due to delays in replacing faulty meters. Bello stressed that, “new meters must be installed immediately after removing any faulty or obsolete unit,” and that consumers should not be subjected to arbitrary billing in the meantime.
A key issue addressed during the meeting was a recent announcement by one of the DISCOs regarding the phase-out of the Unistar prepaid meter model, set to take effect on November 14, 2024. The FCCPC raised concerns over the lack of transparency in the announcement, particularly regarding whether consumers would bear the costs of replacing these meters.
“The announcement by one of the DISCOs lacked critical information, especially about whether consumers would be liable for the replacement costs,” said Bello. This uncertainty has led to worries that the transition from Unistar meters could result in arbitrary estimated billing and undue financial strain on consumers, particularly if consumers are forced to pay for new meters without proper notice or clarification.
The FCCPC’s concerns about these developments are shared by various consumer advocacy groups, who have been pushing for greater transparency and fairness in the electricity sector. The transition away from prepaid meters could lead to increased costs for many households, and consumer groups have called for regulatory oversight to ensure that any changes in the metering system do not disproportionately impact already burdened consumers.
In response to the FCCPC’s directives, both IKEDC and EKEDP have yet to issue public statements regarding their plans to comply with the order. The two companies have been under increasing scrutiny over the past year for issues related to faulty metering systems, inconsistent billing, and lack of adequate consumer engagement.
