Victor EzejaElectricity consumers appear to be in a dilemma as the Nigerian Electricity Regulatory Commission (NERC) and Distribution Companies (DisCos) have been embroiled in a controversy surrounding the upgrade and replacement of meters in recent times.
The issue began when Ikeja Electric and Eko Electricity Distribution Company announced plans to replace Unistar prepayment meters, citing technological upgrades and a Token Identifier (TID) rollover issue.
Join our WhatsApp ChannelHowever, the NERC and the Federal Competition and Consumer Protection Commission (FCCPC) intervened, stating that the replacement of meters must be done free of charge to consumers and without disrupting service. The FCCPC also ordered Ikeja Electric and Eko Electricity Distribution Company to halt the replacement of Unistar prepaid meters, citing non-compliance with guidelines.
The controversy has sparked concerns among consumers, who fear being migrated to estimated billing and facing increased costs. The NERC has repeatedly said it is the responsibility of DisCos to replace obsolete meters free of charge and that no consumer with a meter should be forcefully migrated to estimated billing.
Key Issues
Meter Replacement/upgrade
The crux of the challenge is electricity meter upgrade and replacement of obsolete ones. On one hand is the issue of upgrading the software of the prepaid metres. On the other hand is the replacement of obsolete ones.
The Ikeja Electric Distribution Company (IKEDC) and Eko Electric Distribution Company (EKEDC) covering franchise areas in parts of Lagos and Ogun States had announced that the Unistar brand of prepayment meters would become dysfunctional from November 14 this year. The DisCos claimed that the decision was due to technological upgrades and the Token Identifier (TID) rollover issue with the meter brand deployed over a decade ago.
However, some reports quoted the company (Unistar) affirming that the metres were still in good shape.
In a statement titled, ‘Obsolete Meters’: Violation of Consumers Rights Will Have Stiff Consequences,” NERC clearly stated that both Ikeja and Eko DisCos cannot proceed with the withdrawal or replacement of the Unistar meters unless they have fully complied 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,” part of the statement read.
While NERC and FCCPC have insisted that metre-based consumers should not be forced to switch to estimated billing under the guise of prepayment meter replacement, there are reports that the Ikeja DisCo has insisted on moving customers who have obsolete meters to estimated billing.
A consumer who didn’t want to be named said he and some others under the Ikeja Disco’s franchise were told that they would be moved to estimated billing. “I don’t understand what is happening. We are being forced to return to estimate billing because, according to them, our metres have been phased out,” a customer told Prime Business Africa.
Efforts by Prime Business Africa to get response from the Ikeja DisCo on the matter was unsuccessful as the Chief Commercial Officer, Ogochukwu Onyelucheya, when called via telephone said she was not disposed to speak, as she was in a meeting, and WhatsApp messages sent to her phone thereafter were not responded to.
Fear of Estimated Billing
Consumers fear being migrated to estimated billing, which could lead to increased costs. Nigeria still has a wide meter gap as the number of unmetered customers stands at 7.3 million, according to NERC report released in September. This meter upgrade issue if not resolved, could lead to further rise in number of unmetered customers.
Many consumers who are on estimate billing often find it unfair as they usually feel being charged for more electricity than they use.
“I am more comfortable using prepaid meter than being issued monthly estimated bills which may be outrageous and not reflect our true energy consumption,” said Chibuzor, who resides in Egbeda area of Lagos.
A staff of one of the DisCos who pleaded anonymity told Prime Business Africa that they currently do not have free metres to distribute to customers.
The severe economic hardship in the country as a result of high inflation and rising energy prices, has equally affected cost of new metres which has increased significantly in recent times. This is coupled with complaints of delays and inefficiencies in the installation of metres by Meter Asset Providers (MAPs) approved by NERC.
Aside from the controversy over replacement of obsolete metres, another challenge to electricity consumers is having a successful Standard Transfer Specification (STS) 2 Meter Migration.
READ ALSO: Electricity: NERC Extends DisCos’ Meter Upgrade To January 2025
Though the DisCos have said it is a free upgrade meant to improve the security of electricity meters and the information exchange between a meter and a point-of-sale (POS), many customers are unable to do that yet.
Many customers lamented on social media about being unable to do the meter upgrade which has made them unable to recharge their accounts and use electricity.
The frustrated ones have already succumbed to using estimate billing.
Another X user with username Eccakyky under Port Harcourt Electricity Distribution Company franchise, stated: “I’ve been without light for 48hrs after repeated prior attempts to upgrade my meter failed. I visited their office today and I’m told I’ll have to pay a 250,000 naira for new metre and I’ll b on estimated billing while waiting for the new metre.”
“It’s 6 months since @IkejaElectric retrieved my faulty meter and has refused to replace cos they enjoying charging me using an unfair estimated billing rate. You asked that we submit formal complaints on such, I did, but you still referred me back to same Disco,” another X user, Abiodun Badimuro, wrote while reacting to NERC’s announcement of extension of the deadline for meter upgrade.
While the meter upgrade/replacement crisis lingers, customers who are already used to meter who are affected may be in the dilemma of either grappling with blackout or being forced to adopt the option of estimate billing which keeps them at the mercy of DisCos who determine what they pay on monthly basis.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
