FCCPC orders halt to unistar prepaid meter replacements by IKEDC, EKEDP

The Federal Competition and Consumer Protection Commission (FCCPC) has directed the Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDP) to immediately cease replacing Unistar prepaid meters due to their failure to comply with regulations from the Nigerian Electricity Regulatory Commission (NERC).

This order was made public on Tuesday through a statement posted on the FCCPC’s official X page.

The Commission also issued a call to all electricity distribution companies (DISCOs) to engage consumers before categorizing them into billing bands. DISCOs were further instructed to strictly follow industry regulations when billing customers who are yet to be metered.

The directive was issued by FCCPC’s Executive Vice Chairman and CEO, Mr. Tunji Bello, during a stakeholders’ meeting held at the FCCPC headquarters in Abuja.

Meeting Addresses Metering Issues
Representatives from NERC, the Nigerian Electricity Management Services Agency (NEMSA), several DISCOs, and Unistar Hitech Systems Limited were in attendance at the meeting, which focused on addressing critical issues related to metering and billing practices affecting Nigerian electricity consumers.

In his address, Mr. Bello emphasized the severe challenges facing consumers, including persistent billing inaccuracies and poor customer service. He cited a specific complaint from an Ikeja Electric customer who was asked to replace a functional meter at a personal cost, an issue that had sparked widespread frustration.

To prevent potential exploitation, the FCCPC ordered that all meter replacement processes be carried out transparently, with costs to be absorbed by the DISCOs rather than passed on to consumers. Bello also reiterated that under NERC’s National Mass Metering Programme (NMMP), DISCOs are required to prioritize metering for unmetered customers, while adhering to strict protocols when replacing faulty or outdated meters.

Non-Compliance with NERC Orders
The FCCPC’s decision to suspend the replacement of Unistar meters follows allegations of non-compliance by IKEDC and EKEDP with NERC’s structured guidelines for replacing faulty or obsolete customer meters. Both NERC and NEMSA have reportedly endorsed the FCCPC’s position on this matter.

“Citing non-compliance with NERC’s order, FCCPC has directed Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDP) to immediately halt their replacement of Unistar prepaid meters,” the FCCPC stated.

Concerns Over Meter Costs and Estimated Billing
Mr. Bello also expressed concern over systemic inefficiencies in the sector, including the common practice of requiring consumers to pay upfront for meters, which he described as a violation of the NERC Meter Asset Provider and National Mass Metering Regulations 2021.

He also condemned the practice of placing customers with faulty meters on estimated billing, which he said was explicitly prohibited under NERC’s regulations.

“The FCCPC will enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing,” the statement said.

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The Commission also highlighted the importance of educating consumers about their rights and the regulations surrounding metering and billing practices, in order to prevent further exploitation by service providers.

Bello further explained that under NERC’s guidelines, DISCOs are required to inspect faulty meters and provide customers with comprehensive information, including the inspection date, details of the fault, the credentials of the inspecting officer, and the scheduled replacement date.

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DISCOs are also prohibited from placing customers on estimated billing while awaiting the installation of new meters.

Concerns Over Unistar Meter Phase-Out
The FCCPC meeting also addressed a recent announcement by an unnamed DISCO regarding the phase-out of the Unistar prepaid meter model, set to take effect on November 14, 2024.

Mr. Bello raised concerns that the announcement lacked crucial details, such as whether consumers would bear the cost of replacing their meters.

He warned that this could lead to arbitrary estimated billing and unnecessary financial strain on consumers.

In conclusion, the FCCPC reiterated its commitment to safeguarding consumer rights and ensuring that electricity distribution companies adhere to established regulations.

The Commission urged all stakeholders to work together to create a fair and transparent system for metering and billing that protects consumers and fosters trust in the sector.

The FCCPC is a regulatory body established by law to protect the rights of both consumers and businesses, ensuring fairness and transparency in the marketplace.