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Officials Of Ikeja Electric Move Customers To Estimated Billing Under Its Meter Replacement Despite NERC Warnings

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November 28, 2024

SaharaReporters reports that the Nigerian Electricity Regulatory Commission (NERC) had maintained 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.

Officials of the Ikeja Electric have reportedly told its customers that they would be moved to estimated billing under its prepayment meter replacements. 

SaharaReporters reports that the Nigerian Electricity Regulatory Commission (NERC) had maintained 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.

Meanwhile, despite the warnings from the regulatory commission, the Ikeja DisCos has maintained that it would be moving their customers to estimated billing.

A customer told SaharaReporters on Thursday that the officials of the DisCos had informed them officially.

"Contrary to this (NERC) directive, we were told we would be moved to estimated billing by Ikeja Electric officials," one of the customers told SaharaReporters.

NERC had unequivocally stated that 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.

SaharaReporters reported on November 13, that the Federal Competition and Consumer Protection Commission (FCCPC), warned Ikeja and Eko electricity distribution companies (IKEDC and EKEDC) to cease all activities related to the planned replacement of Unistar meters.

The commission had warned that any attempt to proceed in contravention will attract severe consequences, citing Sections 17(j), (l) (s), 116 (2), 124, 125, 138 and 155 of the Federal Competition and Consumer Protection Act (FCCPA) 2018.

The warning which was contained in a statement by Director, Corporate Affairs, Ondaje Ijagwu, had further stated that 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. 

According to the statement, the planned replacement has been invalidated by both the FCCPC and NERC, adding that there is no indication that the affected DisCos have breached its directives.

Titled, "'Obsolete Meters': Violation of Consumers Rights Will Have Stiff Consequences," the commission stated unequivocally that both Ikeja and Eko DisCos cannot proceed with the withdrawal or replacement of the Unistar meters unless they have 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 statement noted.

"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."

However, to clear the air around this replacement of a thing, NERC in a statement, insisted that the DisCos’ attempt to compel electricity consumers to pay for meter replacements has violated its order.

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Electronics