FCCPC Engages DisCos Over Prepaid Meter Phase-out, Pledges Consumer Protection

The Federal Competition and Consumer Protection Commission (FCCPC) is addressing the ongoing concerns surrounding the phase-out of Unistar prepaid meters by Ikeja Electric Plc and other electricity distribution companies (DisCos), following widespread consumer complaints.

Recent announcements by Ikeja Electric indicated that the Unistar prepaid meters, first deployed over a decade ago, will no longer be supported from November 14, 2024, due to technological upgrades and the Token Identifier (TID) rollover issue, director, Special Duties (& Strategic Communication),  Ondaje Ijagwu said in a statement.

The FCCPC has observed rising anxiety among consumers over potential financial burdens, particularly whether they will be required to cover the cost of replacement meters.

Further concerns relate to the possibility of consumers being placed on arbitrary estimated billing during this transition, which would violate existing rules.

These concerns have been worsened by insufficient communication from the DisCos about the phase-out process, leading to uncertainty and distrust.

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In line with its mandate to protect consumers and promote fairness in the Nigerian marketplace, the FCCPC is actively engaging key stakeholders, including the Nigerian Electricity Regulatory Commission (NERC), Nigerian Electricity Management Services Agency (NEMSA), and the eleven (11) DisCos. The goal is to make the metering process transparent and accountable while protecting consumer interests.

The FCCPC said it is initiating discussions with Ikeja Electric and other stakeholders to clarify the phase-out process and ensure that DisCos bear the cost of replacing phased-out meters, without imposing extra charges on consumers.

“The Commission will also work to ensure that DisCos comply with regulatory guidelines, preventing consumers from being unfairly charged or placed on estimated billing. Additionally, the FCCPC will ramp up consumer education on their rights, especially regarding metering and electricity billing, to prevent exploitation.

The FCCPC is committed to preventing any disadvantage to consumers during this meter upgrade. This intervention is in line with President Bola Tinubu’s “Renewed Hope” agenda, aimed at ensuring fair treatment for Nigerian consumers and access to essential services like electricity.

The Commission will continue to advocate for Nigerian consumers and ensure that service providers, including DisCos, act in a consumer-friendly, fair, and transparent manner.