The Federal Competition and Consumer Protection Commission has issued a strong warning to Nigeria’s electricity distribution companies at an urgent stakeholders’ meeting held on Tuesday, emphasizing that it is unacceptable for consumers to bear the cost of replacing prepaid meters.
The FCCPC Executive Vice Chairman and CEO, Tunji Bello, chaired the gathering which brought together key players such as the Nigerian Electricity Regulatory Commission, the Nigerian Electricity Management Services Agency, and the producers of the Unistar prepaid meter.
Bello highlighted the growing number of consumer complaints in Nigeria’s power sector, citing issues such as inaccurate invoicing, poor metering practices, sporadic disconnections, and inadequate customer support.
He declared that ‘human-made’ problems that result from structural inefficiency and a culture of impunity among certain service providers would no longer be tolerated.
Following the DisCo’s announcement that it would be discontinuing the Unistar prepaid meter type beginning on November 14, 2024, Bello criticized the lack of clear information regarding whether customers will be compensated for replacement meters.
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.
“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.”
Bello noted that some DisCos have been ignoring this regulation, which involves putting customers on estimated billing because of faulty meters—an action specifically prohibited by NERC.
He noted that FCCPC would scrutinize these claims to ensure that consumers are protected during the transition.
In closing, Bello urged DisCos to bear the replacement costs for any mandatory meter changes and reiterated FCCPC’s commitment to enforcing consumer protection laws in the electricity sector.
He also announced plans to ramp up consumer education on metering and billing rights, aiming to curb potential exploitation.
The FCCPC boss commends NERC and NEMSA’s cooperation and called on all stakeholders to contribute constructively to a fair and transparent electricity sector in Nigeria.
