Consumer shouldn’t pay for Prepaid Meter Replacements – FCCPC directs DisCos

The Federal Competition and Consumer Protection Commission (FCCPC) has directed electricity distribution companies (DisCos) in Nigeria not to charge their consumers for the replacement of prepaid meters.

Executive Vice Chairman/ Chief Executive Officer of the Commission, Tunji Bello, gave the directive at a stakeholders’ meeting on electric meter issues, held at the FCCPC headquarters, Abuja.

Bello said the meeting highlights the FCCPC’s collective responsibility in safeguarding the rights and well-being of electricity consumers amid critical challenges.

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.

“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.

“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.