DisCos should bear the cost of replacing phased-out meters –FCCPC

• The FCCPC says DisCos should be the cost of replacing phased-out meters
• It also assured of engaging with DisCos, NERC and other stakeholders to ensure a transparent and fair replacement process
• The announcement of meter phase-out raises concerns about poor power supply amid frequent national grid collapse

The Federal Competition and Consumer Protection Commission (FCCPC) says electricity distribution companies (DisCos) should bear the cost of replacing phased-out meters.

The commission also said it is engaging DisCos, the Nigerian Electricity Regulatory Commission (NERC) and other stakeholders with the aim of addressing the ongoing concerns surrounding the phase-out of Unistar prepaid meters by DisCos.

This is coming on the heels of 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.

In a statement signed by FCCPC’s Director of Special Duties and Strategic Communication, Mr Ondaje Ijagwu, on Tuesday, October 22, the commission said it had observed rising anxiety among consumers over potential financial burdens, especially with regard to whether they will be required to cover the cost of meter replacement. 

Another concern by consumers, according to the FCCPC, is the possibility of consumers being placed on arbitrary estimated billing during the transition, which would be a violation of existing rules.

The statement read, “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.

“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 11 DisCos. The goal is to make the metering process transparent and accountable while protecting consumer interests.

“The FCCPC 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.”

‘DisCos should comply with regulatory guidelines’

The commission further said it will also work to ensure DisCos comply with regulatory guidelines, preventing consumers from being unfairly charged or placed on estimated billing.

It said, “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 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.”

Ikeja Electric had announced meter phase-out

Ikeja Electric Plc, on October 14, notified its customers of the upcoming phase-out of Unistar prepaid meters because of the rollover of TID and urged affected customers to update their meters to avoid service interruptions before the November 14 deadline.

The terse statement by Ikeja Electric Plc read, “Dear esteemed customer, please note all Unistar meters will be phased out by 14th November 2024 as TID rollover beckons. Apply for a prepaid meter today to avoid estimate billing.” 

The meter phase-out is in response to the technological limitations of the older meters.

There has been widespread poor power supply and recurring grid collapses

The meter phase-out announcement also raises concerns about the power supply in the country as there are widespread complaints of poor supply.

Added to this is the recurring national grid collapse phenomenon in Nigeria. In 10 years, the 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.

Poor electricity supply and hikes have forced consumers to explore other options

Poor electricity supply notwithstanding, electricity tariffs have been on the rise, forcing many consumers to explore alternative electricity generation options.

One such option is solar, which they argue is more sustainable and cost-effective than either regulating power usage or choosing electricity from generating sets.

Though the cost of solar power installation has soared due to increased demand and may run into millions depending on one’s choice, those who opted for it say it is more economical than the exorbitant charges by DisCos.

A social media commentator, Morris Monye, while announcing that he has switched to solar on X, said, “I don leave una. Solar is the best way to go. No more Band A. I think everyone should go this route.”

Band A customers to pay extra N2.70 as DisCos increase electricity tariff

Meanwhile, TheRadar reported that Band A customers of electricity distribution companies (DisCos) will have to pay an extra N2.70 per kilowatt-hour (kWh) following an announcement of an increase in electricity tariff.

The DisCos, which include Ibadan Electricity Distribution Company (IBEDC) Plc, Kaduna DisCo, and Port Harcourt Electricity Distribution Company (PHED), said the tariff has been adjusted from N206.80/kWh to N209.50/kWh effective July 1.