FCCPC Warns DisCos Over Consumer Complaints, Threatens Sanctions
By Patience Ikpeme
The Federal Competition and Consumer Protection Commission (FCCPC) has warned power distribution companies (DisCos) of impending sanctions over widespread reports of extortion and unfair treatment of electricity consumers across Nigeria.
FCCPC Executive Vice Chairman/CEO, Mr. Tunji Bello, issued this warning during an urgent stakeholders’ meeting held in Abuja on Tuesday.
The meeting, convened by the FCCPC, brought together representatives from all eleven DisCos operating in the country, alongside senior officials from the Nigerian Electricity Regulatory Commission (NERC) and the Nigerian Electricity Management Services Agency (NEMSA).
Addressing the concerns raised by consumers, Bello lamented the persistent issues in the electricity sector. “Electricity should be reliable, accessible, and affordable. Unfortunately, the Nigerian electricity sector has long grappled with a range of consumer issues. From our analysis of consumer complaints, it is clear that electricity consumers routinely endure problems related to billing, metering, transformers, connections, disconnections, and customer service,” Bello stated.
Bello highlighted that many of these challenges are rooted in systemic inefficiencies and a culture of impunity among certain service providers. “Regrettably, many of these challenges, from billing inaccuracies to inadequate customer care, are human-made. They stem from systemic inefficiencies and a troubling culture of impunity among certain service providers,” he said.
He emphasized that the Federal Competition and Consumer Protection Act (FCCPA) and NERC regulations guarantee consumers rights, including fair treatment and transparent billing. However, Bello pointed out violations such as the practice of forcing consumers to pay upfront for meters without reimbursement, contrary to the NERC Meter Asset Provider and National Mass Metering Regulations 2021.
“Customers with faulty meters are often subjected to estimated billing, a practice that is explicitly prohibited by NERC,” Bello added, warning DisCos against disregarding regulatory frameworks. “Disregard for robust regulatory frameworks such as the NERC Meter Asset Provider and National Mass Metering Regulations 2021 and the Customer Protection Regulations 2023 will no longer be tolerated.”
Bello stressed that while power shortages in Nigeria are acknowledged, they do not justify systemic abuses against consumers. “Going forward, regulatory breaches in the industry will be met with immediate corrective action,” he warned.
He also addressed the recent announcement by a DisCo regarding the phase-out of the Unistar prepaid meter model from November 14, 2024. Bello noted the lack of clarity on whether consumers would bear the cost of meter replacements and the risk of arbitrary estimated billing during the transition. “This announcement has understandably caused widespread anxiety among consumers, who are already dealing with significant difficulties within and outside the electricity industry,” he said.
In a related remark, NERC Representative Zubair Babatunde clarified that DisCos are not permitted to remove customers’ meters without providing replacements. He reiterated that customers should not be charged for prepaid meter replacements.
The FCCPC’s stern warning signals a potential crackdown on erring DisCos as the Commission seeks to safeguard consumer rights and ensure compliance with regulatory standards in the electricity sector.
