Bello: Regulatory Breaches in Electricity Provision Will be Sanctioned Henceforth

*Says consumers have endured issues with billing, metering, transformers, customer service, others*Declares consumers who paid for meters ought to be reimbursed through energy credits

James Emejo in Abuja

Executive Vice Chairman/Chief Executive, Federal Competition and Consumer Protection Commission (FCCPC), Mr. Tunji Bello, yesterday, vowed that henceforth, regulatory breaches in the electricity industry will be met with immediate corrective action.

Bello said whereas electricity should be reliable, accessible, and affordable to consumers in the country, the sector had continued to grappled with a range of consumer issues that would no longer be tolerated.

Speaking during an urgent stakeholders meeting on electric meter issues in Abuja, Bello regretted that many of the challenges, ranging from billing inaccuracies to inadequate customer care were largely human-made, occasioned by “systemic inefficiencies and a troubling culture of impunity among certain service providers”.

The FCCPC chief executive said complaints had revealed that consumers were 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.

Bello further observed that some Discos randomly placed customers with faulty meters on estimated billing, which he said was prohibited by the Nigerian Electricity Regulatory Commission (NERC).

According to him, the Federal Competition and Consumer Protection Act (FCCPA) and current NERC regulations grant consumers rights, including rights to fair treatment and transparent billing.

He declared that 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, was “unacceptable and will no longer be tolerated”.

Bello said the country currently faced power shortages, adding that these shortages cannot justify systemic abuses against consumers.

\He added that going forward, regulatory breaches in the industry will be met with immediate corrective action.

Specifically, he stated that a recent announcement by an electricity distribution company concerning the phase-out of the Unistar prepaid meter model with effect from November 14, 2024 posed another challenge for consumers, who might face undue hardship if this transition was mishandled.

He said, “As usual, the announcement was devoid of information on whether consumers will be required to cover the cost of replacing meters. The possibility of consumers being placed on arbitrary estimated billing during this transition is also a concern, as it would violate existing rules.

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

Bello also read out a desperate message from a troubled Ikeja Electric customer regarding the announcement.

The text sent to the commission read, “Good evening FCCPC. The exploitation of IKEDC on the change of meter is unacceptable. I have working meters in my house in GRA and they have given a deadline to change meters that ultimately belong to them without bearing some cost. To change the meters in my house will cost about N1M… pls kindly intervene. This is too much to bear at this difficult time. Thank you.”

Bello said it was troubling for the commission to witness consumers being exposed to additional hardship, with minimal information provided by the Disco regarding the transition.

He said, “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.”

He said the engagement would also address broader issues surrounding metering in the industry, particularly the 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.

Bello said, “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, however, Bello said Unistar Hi-Tech Meters had clarified that their prepaid meters, which utilise Card Meter Technology, were upgradable and fully compatible with the Standard Transfer Specification (STS) Meter Technology currently used in distribution networks.

“This assertion by the manufacturers of the meters in question, along with related issues, warrants further scrutiny,” he said.  

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

Nonetheless, Assistant Manager, Nigerian Electricity Management Services Agency (NEMSA), Okeme Obiabo, reaffirmed its commitment to due process in meter replacement.

Obiabo said, “We’ve been addressing obsolete meters, and distribution companies must adhere to the procedures for replacing them. Meter testing and certification are essential, and Discos are responsible for carrying out these replacements and ensuring that faulty meters are replaced promptly.”

Similarly, Head, Consumer Engagement at NERC, Zubair Babatunde, restated the commission’s commitment to consumer protection, particularly in the replacement of obsolete meters.

Babatunde said, “Obsolete meters must not only be replaced but must not be removed without immediate replacement. The consumer should not bear the cost of replacing meters simply because they are obsolete. Our regulations are clear on this.”

Chief Customer Experience Officer at Eko Electricity Distribution Company, Catherine Ezeafulukwe, acknowledged the importance of metering for both consumers and the company.

Ezeafulukwe said, “Consumers are at the heart of our business, and properly metering them will improve the service we provide to them.”