The Federal Competition and Consumer Protection Commission (FCCPC) has assured consumers that they will not bear the financial burden of replacing Unistar prepaid meters as Ikeja Electric Plc and other electricity distribution companies (DisCos) begin phasing out outdated devices.
The FCCPC’s intervention comes after widespread consumer concerns over the impending November 14, 2024, phase-out deadline leading to fears among consumers about potential costs for meter replacements and the possibility of being placed on estimated billing.
In response to these concerns, the FCCPC stated, “We are working to ensure that DisCos bear the cost of replacing phased-out meters and that no additional charges are imposed on consumers.”
The Commission acknowledged the rising anxiety among consumers regarding financial obligations tied to the upgrade and reassured the public that its efforts will protect consumers from unfair billing practices during the transition.
Backstory
Ikeja Electric Plc recently issued a notice to its customers regarding the upcoming phase-out of Unistar prepaid meters due to the Token Identifier (TID) rollover issue.
The announcement, made in anticipation of the November 14, 2024, deadline, urges all affected customers to update their meters to avoid service interruptions.
In a public statement, Ikeja Electric explained, “Dear esteemed customer, please note all Unistar meters will be phased out by 14th November 2024 as TID rollover beckons.” The company encouraged customers to take prompt action by visiting their online portal to apply for a new prepaid meter.
This phase-out, a response to the technological limitations of the older meters, has sparked concerns among consumers about potential replacement costs and possible disruptions to their electricity service. Ikeja Electric’s communication, however, was brief, leaving many customers uncertain about the details of the transition and what steps they should take.
FCCPC mandates DisCos to comply with regulations
In line with its mandate under the Federal Competition and Consumer Protection Act (FCCPA) 2018, the FCCPC emphasized that it would ensure strict regulatory compliance to prevent any violation of consumer rights. “We are committed to making sure that DisCos comply with all regulatory guidelines and that consumers are not unfairly subjected to estimated billing systems during the phase-out period,” the FCCPC said.
To further address the situation, the FCCPC is in active discussions with Ikeja Electric and other key stakeholders, including the Nigerian Electricity Regulatory Commission (NERC) and the Nigerian Electricity Management Services Agency (NEMSA), to clarify the phase-out process.
The Commission is particularly focused on ensuring that the transition remains transparent and accountable to the consumers.
Communication failures fuel distrust
The FCCPC also pointed out the lack of adequate communication from Ikeja Electric and other DisCos as a key factor behind the uncertainty and distrust among consumers. “There has been insufficient communication from the DisCos, which has exacerbated concerns among consumers,” the FCCPC observed.
As part of its strategy, the FCCPC has committed to ramping up consumer education to ensure that the public is fully informed about their rights. The Commission stated, “We will enhance consumer education efforts, especially regarding electricity billing and metering, to prevent any exploitation.”