close
close

Association-anemone

Bite-sized brilliance in every update

DisCos suspend Unistar meter phase-out over FCCPC directive — Business — The Guardian Nigeria News – Nigeria and World News
asane

DisCos suspend Unistar meter phase-out over FCCPC directive — Business — The Guardian Nigeria News – Nigeria and World News

The Eko and Ikeja Electricity Distribution Companies (DisCos) have said they are maintaining the status quo on their plans to phase out Unistar meters amid directives from the Federal Competition and Consumer Protection Commission (FCCPC) to suspend any move replacement.

The FCCPC has issued a directive for DisCos to suspend meter replacement to prevent potential disruptions and increased costs for customers already facing economic challenges.

DisCos has announced that Unistar meters will be phased out today, urging customers to apply for new meters as Unistar meters are no longer compatible with the new STS 2.0 metering system.

However, citing non-compliance with the order of the Nigerian Electricity Regulatory Commission (NERC), the Federal Government has ordered Ikeja Electricity and Eko Electricity Discos to immediately stop the replacement of meters prepared by Unistar billed to start today.

The FCCPC also ordered the DisCos to stop the replacement process which they said resulted from the DisCos’ failure to comply with the Nigerian Electricity Regulatory Commission (NERC) Order on Structured Replacement of Defective and Obsolete End-User Customer Meters in the Industry of Nigeria Electricity Supply (NESI).

The FCCPC directive came amid growing consumer concerns that the phase-out could increase metering gaps and lead to an increase in estimated billing cases.

NERC and the Nigerian Electricity Management Services Agency (NEMSA) supported the FCCPC’s position on stopping the replacement of Unistar prepaid meters.
In a new development by the FCCPC, it has stated that its directive remains in force and any attempt by the two Discos to proceed in violation of it will attract serious consequences.

The Commission made this known in a statement signed on Wednesday by its Director, Corporate Affairs, Ondaje Ijagwu, stressing that its position remains clear as non-compliance with these directives by Ikeja and Eko DisCos will not be tolerated and any breach of this directive will be tolerated. attracts severe penalties under existing consumer protection laws.

“It is essential to clarify that Ikeja and Eko DisCos cannot proceed with the withdrawal or replacement of Unistar meters unless they fully comply with the NERC Order on the Structured Replacement of Defective and Obsolete End User Customer Meters in the Nigerian Electricity Supply Industry (No . . NERC/246/2021).

“The order requires that meter replacement be prompt, without disrupting service and at no cost to the consumer; and ensuring that consumers are not subject to estimated billing due to delayed installations,” it states.

EKEDC General Manager Corporate Communications Babatunde Lasaki told The Guardian that the DisCo is complying with the regulatory authorities to maintain the status quo for now.

In response to the FCCPC’s statement of violation of the directive, Lasaki argued that NERC is their regulatory authority; therefore, their actions and operations are guided by the commission’s rules and regulations.

“DisCos is working with our regulators and other parties to reach an amicable solution for all involved,” he said. The FCCPC noted that contrary to recent speculation, NERC’s approval of new meter prices has nothing to do with the proposed replacement of Unistar meters by IKEDC and EKEDC.

It added that the planned replacement has been invalidated by both FCCPC and NERC and there is no indication that the affected DisCos have violated their directives.

Also, the General Manager of Corporate Communications at Ikeja Electric, Kingsley Okotie, told The Guardian that they are also complying with the regulator’s position on the phase-out because they are not doing otherwise.

“The regulatory position on this matter is clear and as such Ikeja Electric as a responsible organization operating within the law will not do otherwise but continue to engage with our industry regulator (NERC) and other stakeholders sector critics. to address the gray areas as we progress,” he said.