FCCPC Urges Consumer-Centric Approach to Metering by Nigerian DisCos amid Transition from Obsolete Meters

Mr. Tunji Bello, Executive Vice Chairman of the Federal Competition and Consumer Protection Commission (FCCPC), has underscored the responsibility of Nigeria’s Electricity Distribution Companies (DisCos) to prioritise consumer rights in the ongoing efforts to upgrade Nigeria’s electricity metering system.

Speaking at an emergency stakeholders’ meeting in Abuja on Tuesday, Mr. Bello emphasized the need for transparent and equitable metering practices, especially in light of the DISCO’s effort to transition away from obsolete metering systems.

Representatives from the Nigeria Electricity Regulatory Commission (NERC), DisCos i.e. such as Ikeja Electric and Eko Electricity Distribution Company, as well as Unistar Metering Services and the Nigerian Electricity Management Services Agency (NEMSA), were present at the session to address the growing consumer concerns and restate regulatory expectations.

Meeting Objective

The session focused on the ongoing phase-out of obsolete Smart Single Phase (STS) card meters, which are said to be growingly incompatible with modern day metering systems.

Recall that there are also ongoing efforts to mandatorily implement Token Identifier (TID) rollover for smart STS compliant meters failing which the smart meters will become non-operational by 14th November 2024.

The FCCPC reiterated that this process must not disrupt consumer services or create undue financial burdens.

For the TID rollover, NERC has mandated DisCos to ensure full migration to the updated STS version by the deadline to ensure service continuity for customers and prevent potential revenue loss.

The FCCPC expressed concerns over arbitrary billing practices and stressed that the transition from obsolete to modern meters should adhere to NERC’s stipulations to avoid consumers being placed on estimated billing—a practice widely criticized by Nigerian consumers.

What you Must Know

While NERC has been actively monitoring the TID rollover progress, several DisCos are also replacing older Unistar prepaid meters, installed between 2001 to 2005, with modern, compatible smart meters.

This initiative led some DisCos to notify customers about the need for meter upgrades, prompting significant public concern over who bears the cost of replacement.

Mr. Bello stated that DisCos ought to absorb these costs to prevent any additional charges for consumers during the transition period.

From the Discos point of view, all metering options allowed by law and extant regulations should be open for customers metering and should not be restricted to enable them achieve the industry objectives of billing loss reduction as a result of old metering instruments, and curtail the very high incidence of energy theft and other vices.

Recall that there are several metering solutions aimed at increasing access to meters and protecting customers.

Available options include the National Mass Metering Programme (NMMP), the Meter Asset Provider (MAP) scheme, and the World Bank-funded Distribution Sector Recovery Programme (DISREP).

The DISREP program, the Presidential Metering Initiative and others, seek to alleviate metering shortfalls and enhance transparency in billing practices in the industry.

Additionally, a meter acquisition fund (MAF) has been set up by NERC to support DisCos in ensuring meter availability.

These initiatives collectively aim to address Nigeria’s meter deficit and foster consumer trust in the electricity market.

Mr. Bello further emphasized that the FCCPC and NERC will continue to monitor adherence to consumer protection standards, ensuring DisCos act in the best interest of consumers by maintaining transparency and integrity in the metering process.