Nigeria’s Energy Shake-Up: Power Companies to Bear Costs of Phased-Out Meters, Says Regulator

The Federal Competition and Consumer Protection Commission (FCCPC) has clarified that power distribution companies (Discos) will be fully responsible for replacing outdated prepaid meters in their respective regions, following mounting consumer concerns.

This announcement follows Ikeja Electric Plc’s decision to phase out Unistar prepaid meters, which have been in use for over a decade, starting from November 14, 2024. The utility firm cited necessary technological upgrades and complications arising from Token Identifier rollover as key reasons behind the move.

The FCCPC, however, reassured the public that the burden of meter replacement would not fall on consumers. The agency’s Director of Special Duties and Strategic Communication, Ondaje Ijagwu, addressed the situation on Tuesday, following a wave of anxiety from consumers over potential costs linked to the transition.

“We are acutely aware of the anxiety among consumers regarding potential costs associated with replacing their meters. Our priority is to ensure that these costs do not fall on consumers during this transition,” Ijagwu said in a statement.

The regulator also warned against the risk of consumers being pushed onto arbitrary estimated billing practices, an issue that has plagued Nigeria’s power sector for years. Ijagwu reaffirmed that any attempt to impose such charges would be a violation of existing regulations.

“To bolster consumer confidence, we are actively engaging with key stakeholders, including the Nigerian Electricity Regulatory Commission and the Nigerian Electricity Management Services Agency. Our discussions will ensure that Discos take responsibility for replacing phased-out meters without passing additional costs to consumers,” he stated.

The FCCPC is also launching a public awareness campaign to educate consumers on their rights regarding metering and billing. Ijagwu underscored the importance of empowering consumers with knowledge to avoid exploitation during the ongoing meter upgrade.

“It’s essential that consumers are informed about their rights to prevent exploitation during this critical period,” he added. “We will continue to advocate for consumers, ensuring that service providers act in a manner that is transparent and equitable.”

As Nigeria grapples with the challenges of upgrading its power infrastructure, the FCCPC’s stance represents a significant step in safeguarding the interests of consumers, ensuring a fair and transparent metering process across the country.