FCCPC Engages DisCos Over Prepaid Meter Phase-Out, Vows Consumer Protection Amid Concerns

The Federal Competition and Consumer Protection Commission (FCCPC) has taken action in response to growing concerns about the impending phase-out of Unistar prepaid meters by Ikeja Electric Plc and other electricity distribution companies (DisCos).

The move, set to take effect on November 14, 2024, has triggered widespread anxiety among consumers, primarily due to uncertainties surrounding the cost of replacing the meters and potential exposure to estimated billing during the transition period.

The Unistar prepaid meters, first introduced more than a decade ago, will no longer be supported due to necessary technological upgrades, including the Token Identifier (TID) rollover issue, Ikeja Electric announced recently.

The FCCPC has noted rising consumer apprehension, particularly regarding the possibility of consumers being required to pay for new meters and the potential for being placed on estimated billing, which would contravene existing regulations.

According to a statement issued on Tuesday by the FCCPC’s Director of Special Duties and Strategic Communication, Ondaje Ijagwu, “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 ensure fairness in the Nigerian marketplace, the FCCPC is actively engaging key stakeholders, including the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), and the country’s eleven electricity distribution companies (DisCos). The goal is to ensure transparency and accountability in the metering process while safeguarding consumers’ interests.

The FCCPC says it has initiated discussions with Ikeja Electric and other DisCos to clarify the phase-out procedure and ensure that consumers are not financially burdened with the cost of replacement meters. The Commission noted that

“DisCos must bear the cost of replacing phased-out meters, without imposing extra charges on consumers.”

Additionally, the FCCPC is working to prevent any arbitrary estimated billing practices during this transition period, which would violate regulatory guidelines, stating that it also plans to ramp up consumer education efforts, ensuring that the public is fully aware of their rights regarding electricity metering and billing to prevent exploitation.

The FCCPC said its intervention aligns with President Bola Tinubu’s “Renewed Hope” agenda, aimed at ensuring fair treatment of Nigerian consumers and their access to essential services like electricity, emphasising that it remains committed to advocating for consumers and ensuring that service providers, including DisCos, operate in a fair, transparent, and consumer-friendly manner throughout the meter upgrade process.

The commission also added that it continues to engage with Ikeja Electric and other stakeholders to safeguard consumer rights during the transition.

Faridah Abdulkadiri

Follow us on: