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Over 3 Million Nigerian Electricity Customers at Risk of Estimated Billing Over Meter Upgrades

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By DAYO ADESULU

Consumers Face Darkness or Estimated Billing Amid Widespread Complaints

More than three million electricity customers in Nigeria could be plunged into estimated billing or experience power outages due to their failure to upgrade their prepaid meters in line with government policies. The Nigerian Electricity Regulatory Commission (NERC) had set a November 24, 2024, deadline for consumers to update their meters, warning that failure to do so would result in restricted access to electricity services.


Meter Upgrade Policy Sparks Backlash

A consumer group estimates that about half of the 5.9 million metered customers in Nigeria have yet to upgrade their meters. Despite NERC’s repeated sensitization campaigns, customers cite technical glitches, lack of electricity, and uncooperative distribution companies (DisCos) as barriers to compliance.

According to NERC, the upgrade is straightforward, requiring customers to obtain two free Key Change Tokens (KCTs) from their DisCos. The commission assured consumers that the upgrade would not affect existing credit balances or meter functionality. However, several complaints suggest that customers have encountered challenges in the process.

Controversy Over Unistar Meters

In Lagos, customers using Unistar meters were informed that their meters would be phased out due to Token Identifier (TID) rollover issues. These consumers were asked to pay for meter replacements, which sparked outrage.

Unistar Hitech Systems Limited, the manufacturer of the affected meters, denied claims of obsolescence, asserting that their meters could be upgraded to comply with current standards. The Federal Competition and Consumer Protection Commission (FCCPC) intervened, directing DisCos to halt any replacement activities requiring customer payment.


Consumer Complaints and Regulatory Lapses

Many customers expressed frustration over being forced to pay for meter replacements or being placed on exorbitant estimated billing systems.

  • A property manager in Ikeja reported that tenants were billed N268,000 monthly for electricity, despite minimal consumption.
  • Customers in Enugu, Port Harcourt, and Abuja complained about prolonged power outages, unresolved meter issues, and inadequate support from DisCos.

The FCCPC criticized DisCos for failing to replace faulty or obsolete meters promptly and transparently, calling their practices a violation of NERC regulations.


Regulators and DisCos Respond

NERC and the FCCPC have reiterated that DisCos are obligated to replace faulty or obsolete meters at no cost to the consumer. NERC’s Vice Chairman, Musiliu Oseni, emphasized that no customer should be migrated to estimated billing during the meter replacement process.

Sunday Oduntan, Executive Director of the Association of Nigerian Electricity Distributors, assured consumers that the replacement of faulty meters would continue until March 2025. He maintained that costs associated with replacements would not be passed on to consumers.


Consumer Advocacy Groups React

The National Coordinator of All Electricity Consumers Forum, Adeola Samuel-Ilori, urged consumers to take responsibility for upgrading their meters, noting that the exercise began last year. However, he cautioned against any attempt by DisCos to exploit customers or infringe on their rights.


What’s Next for Affected Customers?

For customers whose meters remain unupgraded, the options are limited. They may either endure estimated billing, seek meter replacements directly from DisCos, or face electricity disconnection. Advocacy groups continue to push for transparency and fairness in the implementation of the upgrade policy.


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