The Federal Competition and Consumer Protection Commission on Tuesday told electricity distribution companies in Nigeria not to charge their consumers for the replacement of prepaid meters.
The Executive Vice Chairman/Chief Executive Officer, FCCPC, Mr. Tunji Bello, gave the directive at a stakeholders’ meeting on electric meter issues held at the FCCPC headquarters in Abuja.
The meeting was convened to address pressing metering issues facing consumers in Nigeria’s electricity sector.
Bello said the meeting highlights the FCCPC’s collective responsibility in safeguarding the rights and well-being of electricity consumers amidst critical challenges.
According to him, while electricity should be reliable, accessible, and affordable, unfortunately, the Nigerian electricity sector has long grappled with a range of consumer issues.
From the FCCPC’s analysis of consumer complaints, Bello told the stakeholders that it is clear that electricity consumers routinely endure problems related to billing, metering, transformers, connections, disconnections, and customer service, among others.
Regrettably, he said many of these challenges, from billing inaccuracies to inadequate customer care, are human-made, adding that they stem from systemic inefficiencies and a troubling culture of impunity among certain service providers.
He said, “The Federal Competition and Consumer Protection Act (FCCPA) and current NERC regulations grant consumers rights, including rights to fair treatment and transparent billing.
“However, complaints reveal that consumers are often forced to pay upfront for meters without reimbursement, contrary to established guidelines under the NERC Meter Asset Provider and National Mass Metering Regulations 2021, which stipulate reimbursement through energy credits.
“Furthermore, customers with faulty meters are randomly placed on estimated billing by some DisCos, a practice that is clearly prohibited by NERC.
“The disregard for robust regulatory frameworks, such as the NERC Meter Asset Provider and National Mass Metering Regulations 2021 and the Customer Protection Regulations 2023, by DisCos is unacceptable and will no longer be tolerated.
“While it is recognised that Nigeria faces power shortages, these shortages cannot justify systemic abuses against consumers. Going forward, regulatory breaches in the industry will be met with immediate corrective action.”
Bello explained further that the recent announcement by an electricity distribution company concerning the phase-out of the Unistar prepaid meter model with effect from November 14th, 2024 poses yet another challenge for consumers, who may face undue hardship if this transition is mishandled.
He added, “As usual, the announcement was devoid of information on whether consumers will be required to cover the cost of replacing meters. The possibility of consumers being placed on arbitrary estimated billing during this transition is also a concern, as it would violate existing rules.
“This announcement has understandably caused widespread anxiety among consumers, who are already dealing with significant difficulties within and outside the electricity industry.
“For the Federal Competition and Consumer Protection Commission (FCCPC), it is troubling to witness consumers being exposed to additional hardship, with minimal information provided by the DisCo regarding this transition.
“In response, the FCCPC has convened this meeting to engage with key stakeholders, including the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), the twelve (12) DisCos and the manufacturer of the Unistar prepaid meter model.
“Our objective is to ensure that every metering process remains transparent and accountable, prioritising the interests of consumers.
“At this meeting, we aim to clarify the phase-out process and advise DisCos to bear the replacement costs for their meters without imposing additional charges on consumers.
“The Commission is committed to enforcing strict adherence to regulatory guidelines, ensuring that consumers are neither unfairly charged nor randomly subjected to estimated billing.”
Bello noted that the engagement will also address broader issues surrounding metering in the electricity industry.
“These include non-reimbursement for meter purchases, delays in meter installation and repairs, estimated billing of customers with faulty meters, consumer exploitation by meter installers, token loading challenges, and inadequate customer service.
“Under this dispensation, and like ever before, the FCCPC is committed to the unbiased enforcement of all consumer protection regulations, including those within the electricity sector, particularly the directives of NERC,” he added.
By virtue of Section 17(a) of the FCCPA, Bello said the Commission is mandated to administer and enforce consumer protection laws, ensuring fairness in market practices, noting that this mandate reinforces its commitment to stand firmly with Nigerian consumers and hold service providers accountable
