FCCPC intervenes in prepaid meter phase-out by DisCos, ensures consumer protection

Lagos, Nigeria – Tuesday, October 22, 2024: The Federal Competition and Consumer Protection Commission (FCCPC) is taking action to address concerns surrounding the impending phase-out of Unistar prepaid meters by Ikeja Electric Plc and other electricity distribution companies (DisCos). The announcement follows a wave of consumer complaints about the transition process.

Ikeja Electric recently declared that the Unistar prepaid meters, which were introduced over a decade ago, will be discontinued starting November 14, 2024, due to technological advancements and the Token Identifier (TID) rollover issue. This upgrade, however, has raised significant concerns among consumers regarding the financial burden of replacing the meters, as well as fears of being subjected to arbitrary estimated billing practices during the transition.

The FCCPC has noted growing anxiety among consumers who are uncertain about whether they will be required to pay for new meters or face unfair billing. The lack of clear communication from the DisCos about the phase-out process has further fueled consumer distrust.

In response, the FCCPC, acting under its mandate as outlined in Sections 17(j), (l) (s), 116(2), 124, 125, 138, and 155 of the Federal Competition and Consumer Protection Act (FCCPA) 2018, has launched a series of interventions. These efforts include engaging key stakeholders such as the Nigerian Electricity Regulatory Commission (NERC), Nigerian Electricity Management Services Agency (NEMSA), and all eleven DisCos to ensure transparency and fairness in the metering process.

The Commission is leading discussions with Ikeja Electric and other relevant parties to clarify the meter phase-out process. It is advocating for the DisCos to cover the cost of replacing outdated meters, without passing additional expenses onto consumers. The FCCPC also plans to monitor compliance with regulatory guidelines, ensuring that consumers are not subjected to unfair charges or placed on estimated billing during the transition period.

In a statement, Ondaje Ijagwu, Director of Special Duties & Strategic Communication at the FCCPC, reaffirmed the Commission’s commitment to protecting consumers’ rights and interests. “The FCCPC will continue to ensure that Nigerian consumers are not disadvantaged during this meter upgrade process,” he stated. “Our focus is on preventing exploitation and promoting transparency and fairness in the marketplace, particularly in critical sectors like electricity.”

The Commission emphasised that this intervention aligns with President Bola Tinubu’s “Renewed Hope” agenda, which prioritises fairness for Nigerian consumers and access to essential services, including electricity.

Moving forward, the FCCPC plans to intensify consumer education efforts, ensuring that Nigerians understand their rights regarding electricity metering and billing. The Commission will remain vigilant, advocating for a consumer-friendly approach to service delivery across the sector.

The FCCPC has assured the public that it will continue to monitor the situation and work with stakeholders to prevent any undue financial or service-related burdens on consumers during this transition.