…Obsolete Meters”: Violation of Consumers Rights Will Have Stiff Consequences— FCCPC
The Nigerian Electricity Regulatory Commission (NERC) has reiterated its directive that no meter-based consumer should be forced to switch to “estimated billing” under the guise of prepayment meter replacements in the West African country.
According to NERC the concerns over prepayment meter replacements are unnecessary as it is the responsibility of electricity Distribution Companies (DisCos) to replace consumers’ prepayment meters free of charge, if the devices are obsolete or faulty.
The Commission had in October 2024 directed the service providers to replace obsolete electricity meters.
Shortly after that the Ikeja Electric Distribution Company (IKEDC) and Eko Electric Distribution Company (EKEDC) covering franchise areas in parts of Lagos and Ogun States later announced the Unistar brand of prepayment meters would become dysfunctional from November 14 this year.
The DisCos stated that their announcements resulted from technological upgrades and the Token Identifier (TID) rollover issue with the meter brand deployed over a decade ago.
However, to clear the air around this replacement of a thing, NERC in a statement on Monday, November 2024 tried to address the uncertainty surrounding meter replacements in the power ecosystem, insisting that the DisCos’ attempt to compel electricity consumers to pay for meter replacements has violated its order.
The power sector regulator directed the service providers to ensure that no meter-based consumers are forced to switch to estimated billing.
It further stated: “The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies (DisCos) have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas.
NERC further said: “This instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete end-use Customer Meters in the Nigerian Electricity Supply Industry.
“The Order clearly states that no customer with a meter should be forcefully migrated to estimated billing.”
The regulator asserted: “If any customer’s meter is adjudged by any DisCo to be obsolete or faulty, it is the responsibility of the DisCo to replace the meter free of charge, provided that the fault was not caused by the customer.
“The Commission restates its commitment to protect customers’ interests and rights by ensuring compliance with established regulatory standards and enforcing regulatory penalties for non-compliance by its licensees.”
The power sector regulator, therefore, urged electricity consumers to report cases of any DisCos’ non-compliance with its order in this regard.
The Federal Competition and Consumer Protection Commission (FCCPC) in its reaction said asking consumers to pay for the replacement of “Obsolete Meters” is a violation of Consumers’ Rights and it will have stiff consequences.
Under Sections 17(j), (l) (s), 116 (2), 124, 125, 138 and 155 of the Federal Competition and Consumer Protection Act (FCCPA) 2018
“The Federal Competition and Consumer Protection Commission (FCCPC) note with concern recent rumours that its directive to Ikeja and Eko electricity distribution companies (IKEDC and EKEDC) to immediately cease all activities related to the planned replacement of Unistar meters may be flouted. The directive remains in full force, and any attempt by these DisCos to proceed in contravention of it will attract severe consequences.”
“Contrary to recent rumours, the approval of new meter prices by the Nigerian Electricity Regulatory Commission (NERC) has no connection with the proposed replacement of Unistar meters by IKEDC and EKEDC. The planned replacement has been invalidated by both the FCCPC and NERC, and there is no indication that the affected DisCos have breached our directives.
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.
The FCCPC’s position remains clear: non-compliance with these directives by Ikeja and Eko DisCos will not be tolerated. Any breach of this directive will attract stiff penalties in line with the provisions of existing consumer protection laws.
Consumers are advised to contact the FCCPC on the Commission’s line, 08119877785, dedicated to electricity issues, should they encounter any attempts by Ikeja or Eko DisCos to disobey this directive.
The FCCPC remains unwavering in its commitment to safeguarding the rights of Nigerian consumers against unfair practices by service providers.”
How Unistar knocks IKEDC, EKEDC over misinformation on meter brand
Claims about compatibility cum dysfunction of the company’s metering equipment, Unistar Hi-Tech Meters has clarified that its prepayment electricity meters utilising Card Meter Technology, are upgradeable and fully compatible with the Standard Transfer Specification (STS) Meter Technology currently employed in distribution networks.
Mr. Niyi Adewoye, Head of Communications at Unistar Hi-Tech Meters, noted this vi while addressing recent claims about the compatibility of the company’s meters in the Nigerian power ecosystem.
Adewoye contended that Unistar’s STS meters have encountered no issues with the TID rollover process.
The company’s Head of Communications also noted that the clarification is sequel to recent claims by Ikeja Electric and Eko Electricity Distribution Company, which advised customers on their networks in Lagos and parts of Ogun State to replace their existing Unistar prepayment meters by November 14, 2024, after which they would become dysfunctional.
According to the DisCos, electricity consumers using Unistar meters should apply for new ones via the company’s Web site.
Ikeja Electric and EKEDC also announced that the current Unistar meters would no longer be able to vend energy units, effective from November 14, due to alleged incompatibility with the new STS 2.0 metering system.
Reacting to the misleading announcements by the two DisCos and other power providers, Adewoye, Spokesperson characterised those notices from EKEDC, issued on October 11, 2024, and followed by a similar notice from Ikeja Electric two days later, as inaccurate and not reflective of the true situation in the metering ecosystem in Nigeria.
Earlier, it was also noted that the two DisCos had advised power consumers to purchase new prepayment meters, claiming the existing units would be decommissioned and rendered non-functional after the stated date.
Unistar, nonetheless, explained that it operates two types of meters: the older Card Meter Technology and the more recent South African-based STS Technology.
While acknowledging that the Card Meter Technology is older, Adewoye asserted its reliability, stating that consumers have consistently validated its effectiveness with no reported issues.
Establishing the company’s stand on the functionality of its prepayment, Unistar’s spokesperson restated that ongoing upgrades to STS technology would not impact the functionality of Card Meter Technology produced by the firm.
“Our meters are upgradeable,” the Adeoye noted.
Unistar further explained that the Nigerian Electricity Regulatory Commission (NERC) has not issued any directive to phase out any specific type of meters or metering technology.
The company reaffirmed its dedication to providing high-quality meters that complies with Nigerian Metering Codes.
“Our meters have been in use in Nigeria for nearly 20 years, and we have consistently supported electricity distribution networks by delivering essential services throughout this period,” Unistar stated.
Still, as of November 11, 2024, reports also suggested that the DisCos insisted on payments by power consumers for the replacement of their functional meters.
Source: BusinessStandard
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