*Officials of the Ikeja Electricity Distribution Company and other DisCos reportedly threaten to migrate electricity consumers involved in the prepayment electricity meter upgrade cum replacement logjam to estimated billing system in clear violation of regulatory Commissions’ directives to ensure fairness, transparency in the metering upgrade and replacement process

Isola Moses | 绿帽献妻

Despite recent regulatory interventions in the electricity Distribution Companies’ (DisCos) prepayment meter upgrade cum meter replacement controversy, officials of the Ikeja Electricity Distribution Company (IKEDC) Plc have informed several power consumers that they would be migrated to estimated billing, according to report.

绿帽献妻 reports in the heat of the recent meter upgrade and replacement brouhaha, the Nigerian Electricity Regulatory Commission (NERC) and the Federal Competition and Consumer Protection Commission (FCCPC) have insistently maintained that no meter-based consumer should be forced to switch to 鈥渆stimated billing鈥� under the guise of prepayment meter replacements in the West African country.

Photo Collage of EKEDC and Yola DisCo’s reminders on meter upgrade to electricity consumers

It was gathered that about three million electricity consumers might be forced into estimated billing, or outright blackouts due to their reported failure to upgrade their prepayment meters.

A consumer group also estimated that half of the 5,993,340 metered customers would be caught in the web of the government policy, according to report.

It is recalled that NERC, October 2024, had directed the service providers to replace obsolete prepayment electricity meters.

The Commission also unequivocally, stated that it is the responsibility of Electricity Distribution Companies to replace consumers鈥� prepayment meters free of charge, if the devices are obsolete or faulty.

It clarified that the DisCos鈥� attempt to compel electricity consumers to pay for meter replacements has violated its order.

However, shortly after NERC’s to the DisCos, the Ikeja Electric Distribution Company and Eko Electricity Distribution Company (EKEDC), covering franchise areas in parts of Lagos and Ogun States, subsequently in public notices to consumers, that the Unistar brand of prepayment meters would become dysfunctional from November 14 this year.

According to the two DisCos, their announcements resulted from technological upgrades and the Token Identifier (TID) rollover issue with the meter brand deployed over a decade ago.

As the Ikeja Electricity Distribution Company Plc and Eko Electricity Distribution Company had directed 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.

鈥榃e鈥檙e already struggling with high electricity tariffs,鈥� consumers react

Abike John, an electricity and mother of three, in Lagos, said the cost of updating her meter would significantly impact her monthly budget, a 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�

Subsequently, the NERC and FCCPC have had to intervene in the burning issue of metering electricity consumers.

Both regulatory Commissions repeatedly, 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.

A customer of the Ikeja Electric complained of how five meters were phased out in a property of eight flats and the flats were placed on estimated billing, with each asked to pay N268,000 per month, The Punch report also stated.

The concerned power consumer and property consultant reportedly said: 鈥淚n a property I manage at Ikeja, a block of eight flats, IKEDC began by phasing out meters. Five meters have been phased out, and the trend continues.

“They asked individual flats to apply for direct connection to the pole with monthly estimated bills. Then, each flat should apply and pay for new meters they never brought.

“The estimated bill now charged for one month per flat is N268,000. How come a three-bedroom flat will consume N268,000 per month? Some don鈥檛 even have an air-conditioner.

鈥淭hree tenants each just received the same bill this week, regardless of their consumption. They went to the IKEDC office to complain, and the officials told them to go and pay their bills,鈥� the property manager complained.

Forceful migration to estimated billing is ‘wickedness against the poor’: Electricity Consumer Advocacy Group

Likewise, Princewill Okorie, Executive Director of the Electricity Consumer Protection Advocacy Centre, expressed displeasure over the number of consumers that would be plunged into estimated billing over the meter upgrade in Nigeria.

Okorie observed that over half of the current metered customers would lose their meters and join the over seven million unmetered ones in the electricity ecosystem in the country.

He stated: 鈥淢ore than half of metered customers will be subjected to estimated billing by this policy. The same meter that people are crying for so that they can know what they are consuming, you want to frustrate them with this strategy.

“You want to bring this strategy to make more consumers go into estimated billing. Are the DisCos obeying the estimated billing methodology approved by NERC?”

The consumer advocate also lamented: 鈥淪o, this is an indirect way of putting Nigerians underestimation. And I know that, without a meter, whether you use light or not, they will give you a bill.

“There was a grid collapse for about five days; the moment light came, those unmetered consumers were made to pay as if there was an electricity supply for 24 hours. It is wickedness against the poor.”

Our meters are upgradeable, says Unistar

Underscoring the fact that the company鈥檚 Unistar prepayment meter brand is upgradable, the Management of Unistar Hi-Tech Meters have clarified that its prepayment electricity meters utilising Card Meter Technology, are upgradeable and fully compatible with the Standard Transfer Specification (STS) Meter Technology currently employed in distribution networks.

Mr. Niyi Adewoye, Head of Communications at Unistar Hi-Tech Meters, noted this vi while addressing recent claims about the compatibility of the company鈥檚 meters in the Nigerian power ecosystem.

Adewoye contended that Unistar鈥檚 STS meters have encountered no issues with the TID rollover process.

The company’s Head of Communications also noted that the clarification is sequel to recent claims by Ikeja Electric and Eko Electricity Distribution Company, which advised customers on their networks in Lagos and parts of Ogun State to replace their existing Unistar prepayment meters by November 14, 2024, after which they would become dysfunctional.

According to the DisCos, electricity consumers using Unistar meters should apply for new ones via the company’s Web site.

Ikeja Electric and EKEDC as well announced that the current Unistar meters would no longer be able to vend energy units, effective from November 14, due to alleged incompatibility with the new STS 2.0 metering system.

Reacting to the misleading announcements by the two DisCos and others power providers, Adewoye, Spokesperson characterised those notices from EKEDC, issued on October 11, 2024, and followed by a similar notice from Ikeja Electric two days later, as inaccurate and not reflective of the true situation in the metering ecosystem in Nigeria.

Earlier, it is also noted that the two DisCos had advised power consumers to purchase new prepayment meters, claiming the existing units would be decommissioned and rendered non-functional after the stated date.

Unistar, nonetheless, explained that it operates two types of meters: the older Card Meter Technology and the more recent South African-based STS Technology.

While acknowledging that the Card Meter Technology is older, Adewoye asserted its reliability, stating that consumers have consistently validated its effectiveness with no reported issues.

Establishing the company鈥檚 stand on the functionality of its prepayment, Unistar鈥檚 spokesperson restated that ongoing upgrades to STS technology would not impact the functionality of Card Meter Technology produced by the firm.

鈥淥ur meters are upgradeable,鈥� the Adeoye noted.

Unistar further explained that the Nigerian Electricity Regulatory Commission has not issued any directive to phase out any specific type of meters or metering technology.

The company reaffirmed its dedication to providing high-quality meters that comply with Nigerian Metering Codes.

鈥淥ur meters have been in use in Nigeria for nearly 20 years, and we have consistently supported electricity distribution networks by delivering essential services throughout this period,鈥� Unistar stated.

Still, as of November 11, 2024, reports also suggested that the DisCos insisted on payments by power consumers for replacement of their functional meters.

DisCos violation of regulations will attract ‘severe consequences’ 鈹�FCCPC

In one of Commission’s interventions, the FCCPC also cautioned the Ikeja and Eko Electricity Distribution Companies to discontinue all activities related to the planned replacement of Unistar meters.

Citing Sections 17(j), (l) (s), 116 (2), 124, 125, 138 and 155 of the Federal Competition and Consumer Protection Act (FCCPA) 2018, Mr. Ondaje Ijagwu, Director of Corporate Affairs at FCCPC, in a statement titled, “Obsolete Meters’: Violation of Consumers Rights Will Have Stiff Consequences”, the market regulator equally warned that any attempt to proceed in contravention would attract severe consequences.

The Commission further clarified that the approval of new prepayment meter prices by the Nigerian Electricity Regulatory Commission (NERC) has no connection with the proposed replacement of Unistar meters by IKEDC and EKEDC.

The regulatory Commission informed Nigerians that the planned meter replacements have been invalidated by both the FCCPC and NERC.

There is no indication that the affected DisCos have breached its directives.

According to FCCPC, “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 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.”

The market regulator stated: “Consumers are advised to contact the FCCPC on the Commission鈥檚 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.”

DisCos’ insistence on migrating consumers to estimated billing

It was gathered that despite the regulatory warnings, the IKEDC has noted it will move affected electricity consumers to estimated billing in the power ecosystem.

A power consumer Thursday, November 28, 2024, affirmed that the officials of the DisCo had informed them officially.

One of the affected consumers told SaharaReporters: “Contrary to this (NERC) directive, we were told we would be moved to estimated billing by Ikeja Electric officials.”

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