Meter Phase -Out: DisCos In A Face-Off With Electricity Regulators And Consumer Protection Agency

 

 

Mary Onyia

The Federal Competition and Consumer Protection Commission, FCCPC and the Eko and Ikeja Electricity Distribution Companies (DisCos) are at loggerheads over the move by the latter to phase out Unister meters.

While the FCCPC demands that the status quo must be maintained until the Eko and Ikeja electricity distribution companies can guarantee an effective and structured replacement of meters at no discomfort and no extra cost to the consumers, the DisCos have insisted on defying the directives from the FCCPC, stating that they are continuing with phasing out the old meters and advising consumers to apply for the new meters.

The FCCPC issued a directive for DisCos to hold off on meter replacements to prevent potential disruptions and increased costs for customers facing economic challenges.

The DisCos, in defiance to the directives from the Nigerian Electricity Regulatory Commission, NERC, and other government bodies calling for the suspension of the replacement exercise billed to commence, Today(Thursday), announced that they would commence the phasing out of the Unistar meters beginning from Thursday, November 14, 2024 and urged customers to apply for new meters as Unistar meters are no longer compatible with the latest STS 2.0 metering system.

The Federal Government, however, directed the Ikeja Electricity and Eko Electricity discos to immediately halt their replacement of Unistar-prepared meters billed to begin today(Thursday).

FCCPC also directed DisCos to discontinue the replacement process which according to them stems from the DisCos’ non-compliance with the Nigerian Electricity Regulatory Commission (NERC) Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry (NESI).

The FCCPC claims to act in the interest of consumers who have expressed fears that the phase-out could increase metering gaps and lead to increased instances of estimated billing.

NERC and The Nigerian Electricity Management Services Agency (NEMSA) endorsed the FCCPC’s stance on halting the replacement of Unistar prepaid meters.

FCCPC has issued a fresh directive to the DisCos maintaining its earlier stance and stating that its directive remains in full force, and any attempt by the two DisCos to proceed in contravention of it will attract severe consequences.

The commission made this known in a statement signed by its Director, Corporate Affairs, Ondaje Ijagwu, on Wednesday emphasising that its position remains clear as non-compliance with these directives by Ikeja and Eko DisCos will not be tolerated stressing that any breach of this directive will attract stiff penalties in line with the provisions of existing consumer protection laws.

“It is essential to clarify that Ikeja and Eko DisCos cannot proceed with the withdrawal or replacement of the Unistar meters unless they fully comply with NERC’s Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry (Order No. NERC/246/2021).

“The order mandates that meter replacements must be prompt, without disrupting service and at no cost to the consumer; and ensuring that consumers are not subjected to estimated billing due to delayed installations,” it stated.

However, in a report by the Guardian newspaper, the General Manager of Corporate Communications at Ikeja Electric, Kingsley Okotie debunked reports that they were in a face-off with the regulators or any other stakeholders in the sector, adding that they have put on hold the planned replacement and have not breached any directive.

“The position of regulation on this issue is clear and as such Ikeja Electric as a responsible organization that operates within the ambit of the law will not do otherwise but rather continue to work with our industry regulator (NERC) and other critical stakeholders in the sector to address grey areas as we progress,” Okotie was quoted to have said.

With additional reports from the Guardian

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