DisCo risks Fed Govt agencies’ sanctions over meters change
Some Federal Government agencies have drawn a battle line with one of the two Electricity Distribution Companies (DisCos) in Lagos – Ikeja Electric (IE).
The DisCo is pushing ahead with the plan to make its consumers pay for replacement of their ‘obsolete’ meters.
It has given a deadline of Thursday (November 14) for the meters to be replaced or the consumers will be unable to recharge.
The other Disco in Lagos, the Eko Electricity Distribution Company (EKEDC), which initially asked its consumers to pay for the replacement of meters, backed down.
It gave them the option of upgrading their meters.
In an advisory, the EKEDC said: “Dear Valued Customer, Upgrade your meter to STS 2 for free! Visit kctcheck.ekedp.com, enter your meter details and click search to receive your 2 sets of 20-digit KCTS. Input them to complete the upgrade.”
At a stakeholders’ engagement in Abuja last week, the Federal Competition and Consumer Protection Commission (FCCPC) and National Electricity Regulatory Commission (NERC) told the DisCo to pull the brake.
But it was learnt that it insisted on forging ahead with the plan.
Yesterday, FCCPC reiterated the warning to the DisCo that consumers must be protected.
It was also learnt that the NERC had written to the DisCo, drawing it attention to sections of the law and regulations it must obey in replacement of meters.
FCCPC Executive Vice Chairman (EVC), Mr. Tunji Bello, in a statement yesterday said: “FCCPC has urged electric distribution companies (DISCOs) to carry energy consumers along before classifying them into bands and also adhere strictly to industry regulations on billing unmetered consumers.
“The systemic inefficiencies and a culture of impunity among some service providers have intensified these issues, leading to the routine exploitation of consumers.
“The practices that require consumers to pay upfront for meters without reimbursement, is a direct violation of the NERC Meter Asset Provider and the National Mass Metering Regulations 2021 should be halted.
“DisCos should stop placing consumers with faulty meters on estimated billing. This is prohibited under NERC’s regulations.”
Bello cited a complaint received by the FCCPC from an IE customer, who expressed frustration at being asked to replace a functioning meter at a significant personal cost.
Bello said the FCCPC is committed to enhancing consumer education on metering and billing practices to guard against potential exploitation by service providers.
He applauded the collaborative efforts of NERC and Nigerian Electricity Management Services Agency (NEMSA) in building a transparent, accountable and consumer-centered electricity sector.
Bello reaffirmed FCCPC’s dedication to enforcing all relevant consumer protection laws within the electricity industry to uphold consumer rights and promote fair market practices.
The FCCPC’s directive to discontinue the replacement process stems from the DisCos’ non-compliance with NERC’s “Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian electricity Supply Industry.”
The NERC’s Order mandates DisCos to prioritise metering for unmetered customers under the National Mass Metering Programme (NMMP) and follow strict guidelines for replacing faulty or obsolete meters.
The guidelines require DisCos to inspect faulty meters and provide detailed information in the replacement notice, including the inspection date, the inspecting officer’s credentials, the identified fault, and the scheduled replacement date.
Furthermore, DisCos are prohibited from placing customers on estimated billing due to delays in meter replacement, as new meters must be installed immediately upon removing any faulty or obsolete unit.
A few weeks ago, the IE sent a note to it consumers, saying: “All Unistar Meters will be phased out by 14th November 2024, as TID rollover beckons. Apply for a prepaid meter today to avoid estimated billing.”
