NERC warns DisCos to stop imposing estimated billing on customers

Nigeria’s regulatory agency, the Nigerian Electricity Regulatory Commission (NERC) has warned Electricity Distribution Companies (DisCos) to stop imposing estimated billing on customers.

NERC reaffirmed the Commission’s directive to DisCos that it was their responsibility to replace faulty electrical meters or outdated ones free of charge.

The agency was reacting to public outcries by customers of DisCos regarding what they perceive as a strategy by the DisCos to compel acceptance of estimated billing by covertly restricting their access to recharge energy credits.
Reacting in a statement on Monday, NERC indicated that it had received reports of DisCos instructing customers to apply for and pay for replacing damaged and outdated meters within their service areas.

The regulator stressed that such directives from the DisCos violate the Commission’s Order No. NERC/246/2021 concerning the Structured Replacement of Faulty and Obsolete End-use Customer Meters in the Nigerian Electricity Supply Industry (NESI).

The statement reads: “The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies (DisCos) have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas.

Customers are encouraged to report any instances of non-compliance by a DisCo through the appropriate channels provided by NERC.

“This instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete end-use Customer Meters in the Nigerian Electricity Supply Industry.”

NERC has stated categorically that no customer equipped with a meter should be compelled to switch to estimated billing.

The regulator clarified that if a customer’s meter is deemed obsolete or faulty by any Distribution Company (DisCo), that DisCo must replace the meter at no cost as long as the customer did not cause the issue.

NERC reaffirmed its dedication to safeguarding the interests and rights of customers by ensuring adherence to established regulatory standards and imposing penalties for any non-compliance by its licensees.

Recently, some consumers of Eko Electricity Distribution Company (EKEDC) and Ikeja Electric (IE) expressed their frustration over their inability to load electricity tokens onto their meters.

This predicament has left many consumers in a difficult situation.

For instance, Cecilia Nwadie, a resident of Lawanson, Surulere, under EKEDC, shared that her attempts to load her energy token over the past two days have been unsuccessful.

As a result, she and her family have been without a power supply.

“I tried to load my meter, but it failed. All that the meter indicated to me was “CALL”. When I eventually called EKEDC customer care, I was told that the meter had expired and that I should apply for another meter,” she told The Nation.

Some reported success in loading their tokens after multiple attempts. In contrast, others claimed they were unable to access the website provided by the utility for updates before the November 14 deadline.

A dissatisfied IE customer, who identified himself as Ladi Ogundele, accused the utility of intentionally placing consumers on estimated billing to take advantage of them.

He noted that IE’s insistence on requiring payment for meter replacement, despite a contrary directive from the Federal Competition and Consumer Protection Commission (FCCPC) and NERC, suggests that the utility’s strategy is to exploit its customers.

The Distribution Company has remained silent since the regulators intervened to enforce compliance with the established rules.

“I think this is an acid test for both FCCPC and NERC. If they allow the DisCos to get away with this apparent disregard for customers, then both agencies of government would have failed,” Ogundele said.