*Nigerian power consumers are resisting electricity Distribution Companies’ attempt to order them to upgrade all obsolete prepayment meters, or face being switched to estimated billing on or before Sunday, November 24, 2024, in contravention of NERC’s ‘Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete End-use Customer Meters in the Nigerian Electricity Supply Industry’

Gbenga Kayode | 绿帽献妻

As millions of Nigerians struggle to eke out a living amid high energy costs cum current economic hardship, a fresh controversy over the upgrade of either existing prepayment electricity meters, or outright acquisition of new ones is fast unsettling many in the power ecosystem.

绿帽献妻 reports most of the 11 electricity Distribution Companies (DisCos) have issued announcements to power consumers in their respective franchise areas to upgrade their prepayment electricity meters on or before Sunday, November 24, 2024, deadline.

The DisCos said any electricity consumers’ failure to do this on or before November 24 would not be able to load tokens into meters, and enjoy electricity supply.

Prepayment electricity meters

Reports indicate that the crux of the controversy is the DisCos’ order to consumers to upgrade all obsolete metres, or face being switched to estimated billing in the country.

Several consumers have resisted the move, as they regard this development as yet another financial burden in the current stifling economic situation in Nigeria.

Earlier, the Ikeja Electricity Distribution Company (IKEDC) Plc and Eko Electricity Distribution Company (EKEDC) had instructed energy consumers using the old Unistar prepayment meters to replace them by November 24, or face being switched to estimated billing thereafter.

However, the directive has not resonated well with several electricity consumers, just the order triggered a backlash.

The power consumers’ concerns later prompted certain regulatory interventions.

The Nigerian Electricity Regulatory Commission (NERC) and the Federal Competition and Consumer Protection Commission (FCCPC) have had to intervene in the burning issue of metering electricity consumers.

Both NERC and FCCPC have urged the Ikeja Electric and EKEDC to not phase out the obsolete prepayment meters, especially since Unistar company has maintained that the company’s meter brand is functioning properly.

The backlash against the two power providers stems from the increased cost of the meters, coming at a time when several Nigerian consumers are still struggling with severe economic difficulties resulting from high inflation and rising energy prices in the economy.

It was learnt the controversy is the issue of Meter Asset Providers (MAPs) companies approved by NERC to supply and install electricity meters.

While these providers help customers to acquire meters, there have been complaints about delays and inefficiencies in the installation process, report said.

FCCPC’s intervention in DisCos’ prepayment meter replacement process

Sequel to a barrage of consumer complaints about the costs of getting new meters and the bill incurred during the period of changing the meters, the Federal Competition and Consumer Protection Commission (FCCPC) recently held a meeting with electricity stakeholders in Abuja, FCT.

The market regulatory Commission, toeing the line of NERC in ensuring consumers are protected in the metering process, as well directed DisCos to replace faulty or obsolete metering devices without charging electricity consumers.

The FCCPC, October 22 this year said it had 鈥渙bserved rising anxiety among consumers over potential financial burdens, particularly whether they will be required to cover the cost of replacement meters.鈥�

‘It’s too much for the average Nigerian consumer to handle’

Speaking on her metering system experience, Abike John, a mother of three, in Lagos, said the cost of updating her meter would significantly impact her monthly budget, BusinessDay report said.

John stated: “I have been managing my electricity expenses carefully, and now they want me to pay for a meter I am already struggling to recharge.

鈥淲hy can鈥檛 they absorb the cost as part of their operations?鈥�

Narrating his ordeal in regard to coping with the current economic atmosphere and attendant dislocations in the country, Adebayo Sulaimon, a Lagos-based resident, commented: 鈥淲e are already struggling with high electricity tariffs, and now we have to pay for meters as well.

鈥淚t鈥檚 just too much for the average Nigerian to handle.鈥�

DisCo: Why prepayment meter update fees?

As regards consumers’ concern about payment for meter upgrades, a senior representative of one of the DisCos reportedly said the meter update is necessary to keep the system running efficiently.

The top official explained: “We understand the concerns of the customers, but this meter upgrade is crucial to improving service delivery.

鈥淚t鈥檚 like updating your phone from iPhone 5 to iPhone 16. “Customers who comply will benefit from reduced technical errors and enhanced transparency in billing.鈥�

He was also quoted to have disclosed that electricity DisCos don鈥檛 have “free meters” to distribute to power consumers in the West African country.

Worse still, it is alleged that despite NERC and FCCPC interventions to ensure sanity, transparency, and fairness to power consumers in the metering process, there still.much inefficiency in the purchase, allocation, and installation of meters.

Olabode Paul, another electricity consumer stated: “Even after making the payments, we have to wait for months to get the meters installed.

鈥淚t鈥檚 a frustrating experience and makes us question the efficiency of the entire system.鈥�

What Nigerian Electricity Supply Industry Act says, by NERC

The Nigerian Electricity Regulatory Commission has acknowledged the challenges and urged DisCos to replace obsolete prepayment meters for their customers without charge.

The Commission also emphasised that, under the Nigerian Electricity Supply Industry (NESI) Act, it is DisCos to replace faulty or outdated prepayment meters for their customers.

The Management of NERC, again, stressed this position on the regulatory requirement

its official social media account earlier this week, restating that no customer should be subjected to estimated billing in Nigeria.

鈥淭he Nigerian Electricity Regulatory Commission is aware that some Distribution Companies have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas.

鈥淭his instruction contravenes the Commission鈥檚 Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete End-use Customer Meters in the Nigerian Electricity Supply Industry.

鈥淭he Order clearly states that no customer with a meter should be forcefully migrated to estimated billing.

“If any customer鈥檚 meter is adjudged by any DisCo to be obsolete or faulty, it is the responsibility of the DisCo to replace the meter free of charge, provided that the fault was not caused by the customer,” averred the Commission.

The statement further urged affected electricity consumers to report any incident via dedicated phone lines and e-mail addresses.

It added: “The Commission restates its commitment to protecting customers鈥� interests and rights by ensuring compliance with established regulatory standards and enforcing regulatory penalties for non-compliance by its licensees.鈥�

Comparative analysis of Nigeria鈥檚 metering system with South Africa鈥檚

In a related development in the Southern African country, Eskom, a power utility company, has announced it finalised a technical breakthrough, allowing zero buyers to update their prepayment electricity meters after the 24 November, 2024, deadline.

绿帽献妻 reports the company announced this in a statement Friday, November 22.

According to Eskom, a 鈥渮ero buyer鈥� is the term the power form uses to describe someone who consumes electricity without purchasing it.

This effectively means that these users have been consuming electricity illegally, in South Africa, MyBroadband report said.

The statement also noted: “Current zero buyers with active meters have been granted an extension to update their meters to be KRN2 (Key Revision Number 2) compliant beyond the 24 November 2024 deadline.

鈥淎 technological breakthrough has enabled Eskom to pre-create Key Change Tokens (KCT) on its online vending system.鈥�

The power utility company urged the so-called zero buyers to visit legal vending sites with their prepayment meter numbers to buy electricity. Vending agents will then issue them their KCT.

It said: 鈥淭his action of purchasing credit tokens must be completed before Sunday, 24 November 2024, to trigger the activation of the meter to the KRN2 mode.

鈥淥nce the meter has been activated by the purchase of electricity, the customer can then visit any of the Eskom sites to complete the conversion process.

“The final step can be completed after 24 November 2024.鈥�

According to Eskom, most buying customers have already completed the update from KRN 1 to KRN 2.

The power utility also provided a brief guide for these users to follow once they obtain their KCT:

Enter the first 20 digits of your recode token

Enter the second 20 digits of your recode token

Finally, enter the 20-digit token from your new electricity purchase to recharge your meter.

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