FCCPC Tasks DISCOs on Band Migration and Metering Compliance

The Federal Competition and Consumer Protection Commission (FCCPC) has called on electricity distribution companies (DISCOs) to engage with energy consumers prior to categorising them into billing bands, while also adhering strictly to existing regulations concerning the billing of unmetered consumers.

This request was made by Mr. Tunji Bello, Executive Vice Chairman and Chief Executive Officer of the FCCPC, during a stakeholders’ meeting at the commission’s headquarters in Abuja. The meeting included representatives from the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), various DISCOs, and Unistar Hitech Systems Limited to discuss urgent metering issues affecting Nigerian consumers.

In response to non-compliance with NERC’s directives, the FCCPC has instructed Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDP) to immediately cease the replacement of Unistar prepaid meters.

During the discussions, Mr. Bello addressed critical challenges faced by electricity consumers, including billing discrepancies and poor customer service. He remarked that systemic inefficiencies and a prevailing culture of impunity among certain service providers have exacerbated these issues, leading to the frequent exploitation of consumers. 

He raised concerns regarding practices that require consumers to pay upfront for new meters without the prospect of reimbursement, which directly contravenes the NERC Meter Asset Provider and National Mass Metering Regulations 2021. 

He also pointed out that DISCOs often impose estimated billing on customers with faulty meters, a practice prohibited under NERC’s rules.

Mr. Bello referenced a specific complaint from an Ikeja Electric customer, who expressed discontent at being charged to replace a functioning meter at a significant personal expense.

To avert potential exploitation, the FCCPC has mandated that all meter replacement activities be conducted transparently, with costs covered by the DISCOs rather than passed on to consumers. He affirmed the FCCPC’s commitment to enforcing compliance with these regulations to protect consumers from unjust charges and estimated billing practices.

Moreover, the FCCPC pledged to improve consumer education regarding metering and billing processes to safeguard against possible exploitation by service providers. Mr. Bello concluded the meeting by thanking NERC and NEMSA for their collaborative efforts in creating a transparent, accountable, and consumer-focused electricity sector. He reiterated the FCCPC’s commitment to enforcing consumer protection laws within the electricity industry to uphold consumer rights and foster fair market practices.

The directive from the FCCPC to halt the meter replacement process is a response to the DISCOs’ failure to comply with NERC’s “Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry.” This position has received backing from both NERC and NEMSA.

NERC’s order stipulates that DISCOs must prioritise metering for unmetered customers as part of the National Mass Metering Programme (NMMP) and adhere to strict protocols when replacing faulty or outdated meters. These protocols require DISCOs to inspect defective meters and provide comprehensive details in the replacement notice, including the inspection date, the qualifications of the inspecting officer, the identified issues, and the planned replacement date. Furthermore, DISCOs are prohibited from placing customers on estimated billing due to delays in meter replacement, mandating that new meters be installed immediately upon the removal of any faulty or obsolete units.

The meeting also addressed a recent announcement by one of the DISCOs regarding the discontinuation of the Unistar prepaid meter model, effective November 14, 2024, which has raised significant concerns among consumers. Mr. Bello highlighted that this announcement lacked vital information regarding whether consumers would bear the costs of replacement, igniting fears that the transition could lead to arbitrary estimated billing and additional financial burdens on consumers.

Frances Ibiefo

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