Arbitrary billing practices, lack of transparency in metering unacceptable, FCCPC warns DisCos

• FCCPC says it will no longer condone unfair practices against electricity consumers by DisCos
• The commission charged DisCos to adhere to regulatory guidelines
• FCCPC promised to dialogue with stakeholders over consumers’ complaints of meter phase-out, billing, among others

The Federal Competition and Consumer Protection Commission (FCCPC) says all unfair actions and practices by electricity Distribution Companies (DisCos) against consumers, such as arbitrary billing and lack of transparency in metering, are unacceptable.

The Executive Vice Chairman of FCCPC, Mr Tunji Bello, stated this during a meeting with key stakeholders from Nigeria’s electricity sector, like DisCos, the Nigerian Electricity Regulatory Commission (NERC) and other relevant stakeholders, in Abuja on Tuesday, November 5.

Bello said the meeting was convened to address the challenges facing the sector, especially consumer complaints about arbitrary billing and metering, adding that consumers must be treated fairly in adherence to the guidelines set out by regulatory bodies like the NERC.

He said, “Electricity should be reliable, accessible and affordable. Unfortunately, the Nigerian electricity sector has long grappled with a range of consumer issues. 

“From our analysis of consumer complaints, it is clear that electricity consumers routinely endure problems related to billing, metering, transformers, connections, disconnections and customer service, among others.

“Regrettably, many of these challenges, from billing inaccuracies to inadequate customer care, are human-made. They stem from systemic inefficiencies and a troubling culture of impunity among certain service providers.”

DisCos must adhere to regulatory guidelines – FCCPC

The FCCPC boss further stated that DisCos must obey regulatory guidelines such as the Federal Competition and Consumer Protection Act (FCCPA) and current NERC regulations, which grant consumers rights, including rights to fair treatment and transparent billing. 

He added that regulatory breaches will not be tolerated.

He said, “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.

“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.

“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.”

FCCPC promised stakeholders’ engagement over meter phase-out

The stakeholders’ meeting convened by the FCCPC follows the commission’s recent position that DisCos should bear the cost of replacing phased-out meters while addressing concerns surrounding the phase-out of Unistar prepaid meters by DisCos.

There were widespread complaints from consumers following a recent announcement by Ikeja Electric that the Unistar prepaid meters, which were 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.

Nigeria’s electricity sector is beset with challenges, especially with complaints of poor power supply, estimated billing, tariff hikes, and recurring grid collapses.

In 10 years, the national grid has collapsed 105 times, 93 times under President Muhammadu Buhari and 12 times in just 16 months of President Bola Tinubu’s administration. In 2024 alone, it has collapsed about nine times, the recent ones being three consecutive times of collapse within one week on October 14, 15 and 19.

The frequent grid collapse may potentially stall Nigeria’s aim of achieving 6,000 megawatts (MW) of power by year-end through a combination of hydroelectric and gas-fired power plants and targets to generate, transmit, and distribute 30 gigawatts (GW) by 2030, 30 per cent of which will be renewable energy, according to the Minister of Power, Adebayo Adelabu.

Nigeria loses $26bn yearly to electricity shortages –Report

Meanwhile, TheRadar reported that Nigeria suffers an estimated annual economic loss of $26 billion due to electricity shortages, according to a report, Africa Trade Barometer, by the Standard Bank.

According to the report, businesses shore up electricity shortages by spending nearly $22 billion annually on off-grid fuel, which leads to increased operational costs.