FCCPC Warns DisCos: Arbitrary Customer Billing Is Unacceptable

Mr. Tunji Bello, the Executive Vice Chairman and CEO of the Federal Competition and Consumer Protection Commission (FCCPC), has urged electricity distribution companies to prioritize consumer rights in the electricity metering process.

He made this call on Tuesday during a meeting between key stakeholders from Nigeria’s electricity sector and the FCCPC in Abuja.

“We are here today because consumers’ rights in metering must be a priority,” Bello said.

“The recent challenges, especially the arbitrary billing practices and the lack of transparency in metering are unacceptable. We must ensure that consumers are treated fairly and that all practices adhere to the guidelines set out by regulatory bodies like the Nigeria Electricity Regulatory Commission,” he added.

The meeting addressed mounting concerns over metering issues, including billing discrepancies and the handling of obsolete meters, particularly in the wake of recent announcements by DisCos.

Bello’s remarks came as the FCCPC addressed growing concerns over the phase-out of the Unistar prepaid meter model, which could potentially create additional hardships for consumers.

The transition, set to begin on November 14, 2024, has raised alarms about whether consumers will be required to bear the costs of replacing these meters or whether they will be subjected to estimated billing practices, which are prohibited by the NERC.

Bello stated that this shift was sharply criticized by one distressed Ikeja Electric customer, who wrote to the FCCPC, saying, “Good evening FCCPC? The exploitation of IKEDC on the change of meter is unacceptable. To change the meters in my house will cost about N1M. Please kindly intervene.”

In response to the situation, Bello emphasised that DisCos must bear the costs of replacing meters without imposing additional charges on consumers, especially during this transition phase. “Consumers should not have to pay for meters that are outdated or no longer in use,” he said.

“The regulations are clear: any transition must be done without burdening the consumer,” he added.

The FCCPC further condemned the widespread practice of placing consumers with faulty meters on estimated billing, describing it as a violation of NERC’s regulations.

“Discos have no excuse for failing to follow proper procedures, including reimbursement for meter purchases and ensuring faulty meters are promptly replaced,” Bello added.

“We will not tolerate any disregard for the rules. Corrective actions will be immediate,” he said.

Various stakeholders were also provide with a platform to voice their positions during the meeting.