Eko and Ikeja Electricity Distribution Companies (DisCos) said they are maintaining the status quo on their plans to phase out Unistar meters amidst directives by the Federal Competition and Consumer Protection Commission (FCCPC) to suspend any replacement move.
The FCCPC issued a directive for DisCos to hold off on meter replacements to prevent potential disruptions and increased costs for customers already facing economic challenges.
The DisCos had announced that Unistar meters would be phased out today urging customers to apply for new meters as Unistar meters are no longer compatible with the new STS 2.0 metering system.
However, citing non-compliance with the Nigerian Electricity Regulatory Commission’s (NERC’s) order, the Federal Government has directed the Ikeja Electricity and Eko Electricity discos to immediately halt their replacement of Unistar-prepared meters billed to begin today.
FCCPC also directed DisCos to discontinue the replacement process which according to them stems from the DisCos’ non-compliance with the Nigerian Electricity Regulatory Commission (NERC) Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry (NESI).
The FCCPC’s directive came amid mounting consumer concerns that the phase-out could increase metering gaps and lead to increased instances of estimated billing.
NERC and The Nigerian Electricity Management Services Agency (NEMSA) endorsed the FCCPC’s stance on halting the replacement of Unistar prepaid meters.
In a new development by FCCPC, it stated that its directive remains in full force, and any attempt by the two DisCos to proceed in contravention of it will attract severe consequences.
The commission made this known in a statement signed by its Director, Corporate Affairs, Ondaje Ijagwu, on Wednesday emphasising that its position remains clear as non-compliance with these directives by Ikeja and Eko DisCos will not be tolerated and any breach of this directive will attract stiff penalties in line with the provisions of existing consumer protection laws.
“It is essential to clarify that Ikeja and Eko DisCos cannot proceed with the withdrawal or replacement of the Unistar meters unless they fully comply with NERC’s Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry (Order No. NERC/246/2021).
“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,” it stated.
The General Manager of Corporate Communications of EKEDC, Babatunde Lasaki told The Guardian that the DisCo was complying with the regulator to maintain the status quo for now.
In response to the statement by FCCPC on flouting the directive, Lasaki maintained that NERC is their regulator; hence their actions and operations are guided by the commission’s rules and regulations.
“The DisCos are working with our regulators and other parties to come to an amicable resolution for all concerned,” he said. FCCPC mentioned that contrary to recent speculations, the approval of new meter prices by NERC has no connection with the proposed replacement of Unistar meters by IKEDC and EKEDC.
It added that the planned replacement has been invalidated by both the FCCPC and NERC, and there is no indication that the affected DisCos have breached their directives.
Also, the General Manager of Corporate Communications at Ikeja Electric, Kingsley Okotie told The Guardian that they are also complying with the regulator’s stance on the phase-out as they are not doing otherwise.
“The position of regulation on this issue is clear and as such Ikeja Electric as a responsible organization that operates within the ambit of the law will not do otherwise but rather continue to work with our industry regulator (NERC) and other critical stakeholders in the sector to address grey areas as we progress,” he said.
