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Home»News»FG Warns Discos Against Arbitrary Billing of Customers
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FG Warns Discos Against Arbitrary Billing of Customers

Mary Osisanya-BelloBy Mary Osisanya-BelloNovember 6, 202402 Mins Read
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The Executive Vice Chairman/CEO of the Federal Competition and Consumer Protection Commission (FCCPC), Mr. Tunji Bello, has called on electricity distribution companies (DisCos) to prioritize consumers’ rights in the metering process and ensure transparency and fairness in billing practices.

Bello made the statement on Tuesday during a meeting with key stakeholders from Nigeria’s electricity sector and the FCCPC in Abuja.

“We are gathered today because consumers’ rights in the metering process must be a priority,” Bello emphasized. “The recent challenges—especially arbitrary billing practices and the lack of transparency in metering—are unacceptable. We must ensure that consumers are treated fairly and that all practices align with the guidelines set by regulatory bodies like the Nigeria Electricity Regulatory Commission (NERC),” he added.

The meeting primarily focused on addressing growing concerns about metering issues, including billing discrepancies and the handling of obsolete meters, particularly in light of recent changes announced by DisCos.

Bello also addressed concerns about the phase-out of the Unistar prepaid meter model, set to begin on November 14, 2024, which has raised questions about whether consumers will be forced to cover the costs of replacing their meters or face the imposition of estimated billing, a practice prohibited by NERC.

One customer, distressed by the impending meter change, wrote to the FCCPC, stating: “The exploitation by Ikeja Electric on the change of meter is unacceptable. To change the meters in my house will cost about N1 million. Please kindly intervene.”

In response, Bello reiterated that DisCos must bear the cost of replacing outdated meters without imposing additional charges on consumers, particularly during this transition period. “Consumers should not be financially burdened for meters that are obsolete or no longer in use,” he said. “The regulations are clear: any transition must not place an undue burden on the consumer.”

Bello also condemned the widespread practice of placing consumers with faulty meters on estimated billing, labeling it a direct violation of NERC’s regulations. “DisCos have no excuse for failing to follow proper procedures, including reimbursing consumers for meter purchases and ensuring faulty meters are promptly replaced,” he stated.

“We will not tolerate any disregard for the rules,” Bello warned. “Corrective actions will be taken immediately.”

The meeting provided an important platform for various stakeholders to voice their concerns and positions on these issues, underscoring the need for greater accountability and consumer protection in the electricity sector.

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Mary Osisanya-Bello
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I am an accountant by profession and a business writer. I'm passionate about tech and how it is a big enabler of business growth.

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