Kunle Awosiyan
There was jubilation among electricity consumers in Lagos at the weekend as the Lagos State Consumer Protection Agency (LASCOPA) in collaboration with the Federal Competition and Consumer Protection Commission (FCCPC) halted the plans by the Ikeja and Eko Electricity Distribution Companies to disconnect them.
The Ikeja Electric and EKO Distribution had given customers with 10 year old meters till Thursday November 14 to buy new ones or lose connection.
Ikeja Electric is charging N112,000 for single phase meter and N214,000 for three-phase.
Tunji Bello
The customers dared to fight, using the country’s consumer protection laws and institutions.
While some of them petitioned the the Lagos State Consumer Protection Agency (LASCOPA), others petitioned the Federal Competition and Consumer Protection Commission (FCCPC) to uphold their rights and fairness in the electricity sector.
In a statement signed by the General Manager of LASCOPA, Afolabi Solebo, the agency called on the Electricity Distribution Companies (DISCOs) operating within the State to ensure full transparency and strict adherence to regulatory guidelines regarding metering, billing, and consumer classification into billing bands.
He expressed concerns over reports of unauthorised costs being transferred to consumers and cases where consumers with functional meters have been pressured into costly replacements.
In his words, “These practices violate the NERC Meter Asset Provider and National Mass Metering Regulations 2021, which clearly state that the cost of meter replacements should not be passed on to consumers.
“We are particularly troubled by cases where customers are placed on estimated billing during meter replacement delays, leading to unnecessary financial burdens in clear defiance of NERC’s prohibition on estimated billing for unmetered consumers.
“LASCOPA is committed to ensuring compliance with these regulations and safeguarding Lagos residents from arbitrary charges and unfair billing practices”, Mr. Solebo said.
The General Manager stated that LASCOPA is directing DISCOs within the state to suspend all consumer-funded meter replacements, insisting that the cost of meter replacements must be fully absorbed by DISCOs, as stipulated by NERC regulations.
He advocated strict adherence to NERC guidelines for the inspection, documentation, and replacement of faulty or obsolete meters, including the provision of detailed information on the identified fault, inspection date, inspecting officer’s credentials, and replacement schedule in any notice issued to consumers.
Solebo insisted that consumers must not be subjected to estimated billing due to delays in meter replacement, stressing that meters should be promptly installed whenever faulty or obsolete meters are removed.
He called for transparency on the part of DISCOs when engaging with consumers, saying “Any announcement regarding meter replacement must clarify all details, including consumer liability, to prevent unwarranted anxiety and confusion”.
Mr. Solebo reaffirmed LASCOPA’s commitment to holding DISCOs accountable and urged all electricity consumers in Lagos State to report cases of non-compliance directly to the Agency.
Earlier last week, the DISCOS had insisted that the affected meters would irreversibly be phased out, a source at the Ikeja Electric told Echonews. He said that anybody whose meter had lasted more than ten years would not be able to recharge it by Thursday, November 14.
However, when our correspondent visited some houses in Ikeja, he discovered that the meters were still in use and the customers were able to recharge it for use.
At Iyala Street Alausa , a customer who identified himself as Segun said that the Ikeja Electric had not deactivated the meter and it could be a result of the order by government to the DISCO to hold on.
Segun said that his meter had lasted 13 years and would not mind to replace it but not at any cost. “Despite that I bought the current one, it is now the IKEDC asset, according to the company. Why should I pay for what is not mine, I can’t understand,”he clarified.
Following LASCOPA’s intervention, its federal counterpart, The FCCPC also raised its voice in defence of consumers.
Speaking on customers’ petitions, the FCCPC, said the interest of consumers must be protected by the DisCos in compliance with the extant laws and regulation.
The Chief Executive Officer, Federal Competition and Consumer Protection Commission (FCCPC), Mr. Tunji Bello, who acknowledged receipt of petitions from electricity customers, said the consumer protection agency would ensure that the rights of the electricity customers are protected.
Also, the Head of Consumer Engagement, National Electricity Regulatory Commission (NERC), Zubair Babatunde, reiterated the commission’s commitment to consumer protection, specifically regarding the replacement of old meters.
“Obsolete meters must not only be replaced, but must not be removed without immediate replacement. The consumer should not bear the cost of replacing meters,” Babatunde said.
A marketing officer for Ikeja Electric, (Names withheld) told Echonews that none of the regulatory bodies that are making cases for the consumers would be around when the DICOS begin to do rollover.
He explained that (Token Identifier) TID Rollover is the process of updating meters to enable them function seamlessly. It is a 24-bit field found in STS-compliant tokens, serving to identify the date and time of token generation.
He said customers would be at the receiving end should they fail to comply with the payment directive “because once the upgrade to STS 2.0 is completed, supply of electricity to such meters cannot be guaranteed”.
He alleged that the DisCos have been recording losses with the continued usage of the meters about to be phased out as the meters are defective.
“They (customers) know why they are protesting the upgrade or replacement. They have been enjoying the system all the while. Once their units are low, the meter doesn’t read efficiently anymore making it a loss for the DisCos.
“They know all these things, but they won’t say it as it is. So, the earlier we get rid of those meters the better for us because of the losses we are incurring from them. This is why we don’t have the luxury of time,” the source said.
However, Tunji Bello, the Chief Executive of FCCPC, said the directive to discontinue the replacement process stemmed from the DISCOs’ non-compliance with NERC’s order on the structured replacement of faulty and obsolete end-user customer meters.
He said the NERC’s order mandated DISCOs to prioritise metering for unmetered customers under the National Mass Metering Programme (NMMP) and to adhere strictly to guidelines when replacing faulty or obsolete meters.
The FCCPC reaffirmed that its directive remained in full force and any attempt by these DisCos to proceed in violation of it will result in severe consequences.
“Contrary to recent rumors, the approval of new meter prices by the Nigerian Electricity Regulatory Commission (NERC) has no bearing on the proposed replacement of Unistar meters by IKEDC and EKEDC.
“The planned replacement has been invalidated by both the FCCPC and NERC, and there is no indication that the affected DisCos have violated our directives,” the statement clarified.
“It is essential to note that Ikeja and Eko DisCos cannot proceed with the withdrawal or replacement of Unistar meters unless they fully comply with NERC’s Order on the Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry (Order No. NERC/246/2021).”
“The FCCPC’s position remains clear: non-compliance with these directives by Ikeja and Eko DisCos will not be tolerated.
“Any breach of this directive will attract stiff penalties in accordance with existing consumer protection laws,” the commission stressed.