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Nigeria’s consumer protection body moves to check DisCos over prepaid meters

The Federal Competition and Consumer Protection Commission (FCCPC) has assured Nigerian consumers that their rights will be safeguarded during the upcoming phase-out of Unistar prepaid meters by Ikeja Electric Plc and other electricity distribution companies (DisCos).

The transition, scheduled to take effect on November 14, 2024, has raised concerns about replacement costs and the potential return to estimated billing practices, prompting the FCCPC to step in.

The Unistar prepaid meters, introduced more than a decade ago, are being phased out due to technological upgrades, including the Token Identifier (TID) rollover issue. While Ikeja Electric recently confirmed the necessity of the upgrade, many consumers fear they may be required to bear the cost of new meters or face unfair billing practices during the transition period.

In response to these concerns, the FCCPC, led by Director of Special Duties and Strategic Communication, Ondaje Ijagwu, acknowledged that a lack of clear communication from DisCos has exacerbated consumer anxieties.

“These concerns have been worsened by insufficient communication from the DisCos about the phase-out process, leading to uncertainty and distrust.

“The FCCPC is actively engaging with Ikeja Electric and other stakeholders, including the Nigerian Electricity Regulatory Commission (NERC) and the Nigerian Electricity Management Services Agency (NEMSA), to ensure fairness in the transition,” the FCCPC said in a statement.

The Commission emphasised that consumers should not be burdened with the cost of replacing the phased-out meters.

“DisCos must bear the cost of replacing phased-out meters, without imposing extra charges on consumers,” the FCCPC stated.

The Commission also assured consumers of its commitment to preventing any use of estimated billing during the meter replacement process, which would violate regulatory guidelines.

“To ensure transparency, the Commission is ramping up consumer education efforts to make sure the public is fully informed of their rights regarding electricity metering and billing,” it stated.

The FCCPC further stated that this intervention is in line with President Bola Tinubu’s “Renewed Hope” agenda, which emphasises making sure Nigerian consumers receive fair treatment and dependable access to basic services like electricity.

It also reaffirmed the Commission’s responsibility to advocating for consumer rights and holding service providers responsible, as well as making sure that the meter upgrade process is conducted smoothly and transparently throughout the nation.

As discussions continue with Ikeja Electric and other DisCos, the FCCPC vows vigilance in safeguarding consumer interests, ensuring that the transition to new prepaid meters is conducted in a manner that is both fair and consumer-friendly.