FCCPC Orders Ikeja, Eko DisCos To Halt Unistar Meter Installation

The Federal Competition and Consumer Protection Commission (FCCPC) has ordered Ikeja Electric and Eko Electricity Distribution Companies (DisCos) to halt the installation of Unistar prepaid meters for electricity consumers

The Commission also tasked DisCos to carry energy consumers along before classifying them into bands and also adhere strictly to industry regulations on billing unmetered consumers. The call was made by FCCPC’s executive vice chairman and chief executive officer, Tunji Bello, at a stakeholders’ meeting held at the FCCPC headquarters in Abuja on Tuesday, which was attended by representatives from the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), various electricity DisCos and Unistar Hitech Systems Limited to address pressing metering issues impacting Nigerian consumers.

Citing noncompliance with NERC’s order, FCCPC directed Ikeja Electricity Distribution Company (IKEDC) and Eko Electricity Distribution Company (EKEDP) to immediately halt their replacement of Unistar prepaid meters.

During the meeting, Bello highlighted significant issues facing electricity consumers, from billing inaccuracies to inadequate customer care.

He noted that systemic inefficiencies and a culture of impunity among some service providers have intensified these issues, leading to the routine exploitation of consumers and expressed concern over practices that require consumers to pay upfront for meters without reimbursement, a direct violation of the NERC Meter Asset Provider and National Mass Metering Regulations 2021. He also noted that DisCos frequently place consumers with faulty meters on estimated billing, which is prohibited under NERC’s regulations.

Bello cited an example of a complaint received by FCCPC from an Ikeja Electric customer, who had expressed frustration at being asked to replace a functioning meter at a significant personal cost.

To prevent potential exploitation, FCCPC has directed that all meter replacement processes be conducted transparently, with costs borne by the DisCos and not passed on to consumers.

Mr. Bello stressed that FCCPC will enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing.

The FCCPC also committed to enhancing consumer education on metering and billing practices to guard against potential exploitation by service providers. Bello concluded by expressing appreciation for the collaborative efforts of NERC and NEMSA in building a transparent, accountable, and consumer-centred electricity sector. He reaffirmed FCCPC’s dedication to enforcing all relevant consumer protection laws within the electricity industry to uphold consumer rights and promote fair market practices.

The FCCPC’s directive to discontinue the replacement process stems from the DisCos’ non-compliance with NERC’s “Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry.” Both NERC and NEMSA endorsed the FCCPC’s stance on the issue.

The NERC’s Order mandates that DisCos must prioritise metering for unmetered customers under the National Mass Metering Programme (NMMP) and follow strict guidelines for replacing faulty or obsolete meters. These guidelines require DisCos to inspect faulty meters and provide detailed information in the replacement notice, including the inspection date, the inspecting officer’s credentials, the identified fault, and the scheduled replacement date. Furthermore, DisCos are prohibited from placing customers on estimated billing due to delays in meter replacement, as new meters must be installed immediately upon removing any faulty or obsolete unit.

The meeting addressed a recent announcement by one of the DisCos regarding the phase-out of the Unistar prepaid meter model, effective November 14, 2024, which has caused considerable anxiety among consumers.

The FCCPC boss emphasised that this announcement lacked critical information regarding whether consumers would be liable for the replacement costs, raising fears that the transition could lead to arbitrary estimated billing and undue financial strain on consumers.