Federal Govt may sanction DisCos over controversial Meter replacement fees
A showdown is brewing between the Federal Government and Ikeja Electric (IE), one of Lagos’ two Electricity Distribution Companies (DisCos), over its controversial plan to make consumers foot the bill for replacing “obsolete” meters.
IE has set a deadline of Thursday, November 14, for customers to pay for the replacement of their meters, warning that failure to comply will prevent them from recharging.
However, this move has sparked strong opposition from several Federal Government agencies, including the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Electricity Regulatory Commission (NERC).
While Ikeja Electric presses ahead with its plan, the other major DisCo in Lagos, Eko Electricity Distribution Company (EKEDC), has reversed its earlier stance on meter replacement.
EKEDC initially required customers to pay for new meters but has since offered a free upgrade option for its consumers.
In an advisory, EKEDC urged customers to visit its website and upgrade to the newer STS 2 meters at no charge.
Despite the growing backlash, IE has remained firm in its position. At a recent stakeholders’ engagement in Abuja, the FCCPC and NERC both warned IE to halt its plan.
FCCPC Executive Vice Chairman Tunji Bello issued a statement reiterating the need for consumer protection and compliance with existing regulations.
Bello emphasised that requiring customers to pay upfront for meter replacements without reimbursement is a direct violation of the National Mass Metering Regulations 2021, specifically the NERC Meter Asset Provider rules.
He also criticised the practice of placing customers with faulty meters on estimated billing, which is prohibited under NERC regulations.
The FCCPC’s concerns were echoed by an IE customer who filed a complaint after being asked to replace a functioning meter at a significant personal cost.
Bello stressed that the FCCPC is committed to raising consumer awareness about metering and billing practices to prevent exploitation.
The ongoing dispute underscores systemic inefficiencies within Nigeria’s electricity sector, according to Bello, who highlighted the need for better consumer education and stronger enforcement of industry regulations.
He praised the collaborative efforts of NERC and the Nigerian Electricity Management Services Agency (NEMSA) in working toward a more transparent, consumer-friendly electricity sector.
The FCCPC’s directive to IE to halt the meter replacement initiative follows a clear violation of NERC’s “Order on Structured Replacement of Faulty and Obsolete End-User Customer Meters in the Nigerian Electricity Supply Industry.”
NERC’s regulations mandate DisCos to prioritis metering unmetered customers under the National Mass Metering Programme (NMMP) and follow strict procedures when replacing faulty meters, including thorough inspections and proper documentation.
As the standoff continues, the outcome could have significant implications for the future of consumer rights in Nigeria’s electricity sector.
