NERC Asks Consumers To Report DisCos Who Request Payments For Obsolete Meter Replacements

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The Nigerian Electricity Regulatory Commission (NERC)  has reiterated that no meter-based consumer should be coerced to switch to “estimated billing” under the guise of prepayment meter replacement.

NERC said it is the responsibility of electricity Distribution Companies (DisCos) to replace consumers’ prepayment meters free of charge if the devices are obsolete or faulty

The regulatory agency had last month directed the service providers to replace obsolete electricity meters.

Subsequently, the Ikeja Electric Distribution Company (IKEDC) and Eko Electric Distribution Company (EKEDC) covering franchise areas in parts of Lagos and Ogun States later announced the Unistar brand of prepayment meters would become dysfunctional from November 14 this year.

The DisCos stated that their announcements resulted from technological upgrades and the Token Identifier (TID) rollover issue with the meter brand deployed since over a decade ago.

As part of its consumer protection measures,  and to clarify issues related to meter replacements in the power ecosystem, NERC in a statement on Monday, November 18, 2024, insisted the DisCos’ attempt to compel electricity consumers to pay for meter replacements has violated its order.

The power sector regulator directed the service providers to ensure that no meter-based consumers are forced to switch to estimated billing.

“The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies (DisCos) have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas.

NERC further said: “This instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete end-use Customer Meters in the Nigerian Electricity Supply Industry.

“The Order clearly states that no customer with a meter should be forcefully migrated to estimated billing.”

The regulator asserted: “If any customer’s meter is adjudged by any DisCo to be obsolete or faulty, it is the responsibility of the DisCo to replace the meter free of charge, provided that the fault was not caused by the customer.

“The Commission restates its commitment to protect customers’ interests and rights by ensuring compliance with established regulatory standards and enforcing regulatory penalties for non-compliance by its licensees.”

The power sector regulator, therefore, urged electricity consumers to report cases of any DisCos’ non-compliance with its order in this regard.

How Unistar knocks IKEDC, EKEDC over misinformation on meter brand

claims about compatibility cum dysfunction of the company’s metering equipment, Unistar Hi-Tech Meters has clarified that its prepayment electricity meters utilising Card Meter Technology, are upgradeable and fully compatible with the Standard Transfer Specification (STS) Meter Technology currently employed in distribution networks.

Mr. Niyi Adewoye, Head of Communications at Unistar Hi-Tech Meters, noted this vi while addressing recent claims about the compatibility of the company’s meters in the Nigerian power ecosystem.

Adewoye contended that Unistar’s STS meters have encountered no issues with the TID rollover process.

The company’s Head of Communications also noted that the clarification is a sequel to recent claims by Ikeja Electric and Eko Electricity Distribution Company, which advised customers on their networks in Lagos and parts of Ogun State to replace their existing Unistar prepayment meters by November 14, 2024, after which they would become dysfunctional.

According to the DisCos, electricity consumers using Unistar meters should apply for new ones via the company’s Web site.

Ikeja Electric and EKEDC also announced that the current Unistar meters would no longer be able to vend energy units, effective from November 14, due to alleged incompatibility with the new STS 2.0 metering system.

Reacting to the misleading announcements by the two DisCos and other power providers, Adewoye, Spokesperson characterised those notices from EKEDC, issued on October 11, 2024, and followed by a similar notice from Ikeja Electric two days later, as inaccurate and not reflective of the true situation in the metering ecosystem in Nigeria.

Earlier, it is also noted that the two DisCos had advised power consumers to purchase new prepayment meters, claiming the existing units would be decommissioned and rendered non-functional after the stated date.

Unistar, nonetheless, explained that it operates two types of meters: the older Card Meter Technology and the more recent South African-based STS Technology.

While acknowledging that the Card Meter Technology is older, Adewoye asserted its reliability, stating that consumers have consistently validated its effectiveness with no reported issues.

Establishing the company’s stand on the functionality of its prepayment, Unistar’s spokesperson restated that ongoing upgrades to STS technology would not impact the functionality of Card Meter Technology produced by the firm.

“Our meters are upgradeable,” the Adeoye noted.

Unistar further explained that the Nigerian Electricity Regulatory Commission (NERC) has not issued any directive to phase out any specific type of meters or metering technology.

The company reaffirmed its dedication to providing high-quality meters that comply with Nigerian Metering Codes.

“Our meters have been in use in Nigeria for nearly 20 years, and we have consistently supported electricity distribution networks by delivering essential services throughout this period,” Unistar stated.

Still, as of November 11, 2024, reports also suggested that the DisCos insisted on payments by power consumers for the replacement of their functional meters.

FCCPC’s intervention in DisCos’ prepayment meter replacement process

Sequel to a barrage of consumer complaints about the costs of getting new meters and the bill incurred during the period of changing the meters, the Federal Competition and Consumer Protection Commission (FCCPC) recently held a meeting with electricity stakeholders in Abuja, FCT.

The Market Regulatory Commission, toeing the line of NERC in ensuring consumers are protected in the metering process, as well directed DisCos to replace faulty or obsolete metering devices without charging electricity consumers.

The FCCPC, on October 22 this year said it had “observed rising anxiety among consumers over potential financial burdens, particularly whether they will be required to cover the cost of replacement meters.”

Regulators’ directive to DisCos to ensure ‘transparent’ metering process

The FCCPC has justified its intervention in the metering process, stating that such is rooted in the Commission’s mandate, pursuant to Sections 17(j), (l) (s), 116 (2), 124, 125, 138 and 155 of the Federal Competition and Consumer Protection Act (FCCPA) 2018.

The Commission averred further concerns related to the possibility of consumers’ being placed on “arbitrary estimated billing” during the ongoing transition, which would violate existing rules.

Ondaje Ijagwu, Director of Special Duties and Strategic Communication at FCCPC, stated: “These concerns have been worsened by insufficient communication from the DisCos about the phase-out process, leading to uncertainty and distrust.”

In respect of its recent strategic stakeholder engagements with NERC, power DisCos, others, the FCCPC clearly said: “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 operating in the West African country.

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

Ijagwu further disclosed 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.”

The market regulator said: “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 Commission restated its commitment to preventing any disadvantage to electricity consumers during this meter upgrade.

According to FCCPC, 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,” stated the FCCPC Director of Special Duties and Strategic Communication.

With additional reports from Consumer Connect

 

 

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