April 3, 2025

FCCPC begins enforcement on DisCos over unfairly charges, estimated billings 

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FCCPC-2

Omeiza Bilal

Nigerians will begin to heave a sigh of relief as the Federal Competition and Consumer Protection Commission (FCCPC), has vowed to enforce strict adherence to regulatory guidelines, ensuring that consumers are neither unfairly charged nor randomly subjected to estimated billing by electricity distribution companies (DisCos). 

The Executive Vice Chairman/CEO, FCCPC Mr. Tunji Bello, at the urgent stakeholders meeting on electric meter issues held Tuesday in Abuja, expressed concern on 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.

Mr. Bello said the announcement was devoid of information on whether consumers will be required to cover the cost of replacing meters. 

He said the possibility of consumers being placed on arbitrary estimated billing during this transition is also a concern, as it would violate existing rules.

He said electricity should be reliable, accessible, and affordable. Unfortunately, the Nigerian electricity sector has long grappled with a range of consumer issues. 

“From our analysis of consumer complaints, it is clear that electricity consumers routinely endure problems related to billing, metering, transformers, connections, disconnections, and customer service, among others.

“Regrettably, many of these challenges, from billing inaccuracies to inadequate customer care, are human-made. They stem from systemic inefficiencies and a troubling culture of impunity among certain service providers.

“This announcement has understandably caused widespread anxiety among consumers, who are already dealing with significant difficulties within and outside the electricity industry.

“For the Federal Competition and Consumer Protection Commission (FCCPC), it is troubling to witness consumers being exposed to additional hardship, with minimal information provided by the DisCo regarding this transition. 

“In response, the FCCPC has convened this meeting to engage with key stakeholders, including the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), the twelve (12) DisCos and the manufacturer of the Unistar prepaid meter model.

“Our objective is to ensure that every metering process remains transparent and accountable, prioritising the interests of consumers. 

“At this meeting, we aim to clarify the phase-out process and advise DisCos to bear the replacement costs for their meters without imposing additional charges on consumers. 

“The Commission is committed to enforcing strict adherence to regulatory guidelines, ensuring that consumers are neither unfairly charged nor randomly subjected to estimated billing.

“This engagement will also address broader issues surrounding metering in the electricity industry. 

“These include non-reimbursement for meter purchases, delays in meter installation and repairs, estimated billing of customers with faulty meters, consumer exploitation by meter installers, token loading challenges, and inadequate customer service.

“Under this dispensation, and like ever before, the FCCPC is committed to the unbiased enforcement of all consumer protection regulations, including those within the electricity sector, particularly the directives of NERC.

“By virtue of Section 17(a) of the FCCPA, this Commission is mandated to “administer and enforce” consumer protection laws, ensuring fairness in market practices.

“This mandate reinforces our commitment to stand firmly with Nigerian consumers and hold service providers accountable.

In a turn of events, Unistar Hi-Tech Meters clarified that their prepaid meters, which utilise Card Meter Technology, are upgradable and fully compatible with the Standard Transfer Specification (STS) Meter Technology currently used in distribution networks. 

“The FCCPC will also intensify the education of consumers on their rights, particularly concerning metering and billing practices, to curb potential exploitation,” he said.

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