Millions of Nigerian Electricity Consumers Face Disconnection Over Prepaid Meter Upgrades

By DAYO ADESULU

Customers Left Stranded Amid Confusion and Complaints

An estimated three million electricity consumers in Nigeria risk disconnection or reliance on estimated billing due to their failure to upgrade their prepaid meters. Despite repeated reminders from the Nigerian Electricity Regulatory Commission (NERC) and electricity distribution companies (DisCos), technical glitches and inadequate consumer education have hindered compliance.

Meter Upgrade Deadline Sparks Controversy

NERC had set November 24, 2024, as the deadline for consumers to update their prepaid meters, warning that failure to comply would prevent customers from recharging their meters. The commission clarified that the update process, facilitated by free Key Change Tokens (KCTs), would not affect existing electricity units or increase meter speed.

However, complaints from consumers indicate widespread issues, including malfunctioning meters, unclear upgrade processes, and a lack of electricity supply needed for the upgrades. Some customers using Unistar meters were informed their meters were outdated and required replacement, sparking outrage as the DisCos demanded payment for replacements.

Consumer Advocacy Groups and FCCPC Intervene

The Federal Competition and Consumer Protection Commission (FCCPC) has criticized DisCos for passing replacement costs to customers, describing the practice as exploitative and a violation of NERC regulations. FCCPC’s Executive Vice Chairman, Tunji Bello, emphasized that all meter replacements should be conducted transparently and at no cost to the consumer.

NERC reinforced this stance, mandating that DisCos replace faulty or obsolete meters without transferring costs to consumers. The regulator also prohibited the migration of metered customers to estimated billing during the replacement process.

Customer Experiences Highlight Challenges

Numerous customers have reported frustrations with the upgrade process:

• Technical Issues: Customers like Esther Madu and Dare Oguntuase shared struggles with meters rejecting tokens or remaining unrepaired for extended periods.
• Estimated Billing Outrage: A property manager in Ikeja reported tenants being charged as high as ₦268,000 per month under estimated billing after their meters were removed.
• Lack of Electricity: In Enugu, residents complained of being unable to upgrade meters due to prolonged power outages.
• Illiteracy Concerns: Advocates raised concerns that elderly or illiterate customers might be left behind due to inadequate public sensitization.

DisCos Commit to Free Meter Replacement

In response to mounting criticism, the Association of Nigerian Electricity Distributors (ANED) assured Nigerians that all obsolete or faulty meters would be replaced at no cost to consumers. ANED’s Executive Director, Sunday Oduntan, stated that the exercise, expected to conclude by March 2025, would address revenue losses caused by bypassing and outdated meters.

Despite these assurances, customers remain skeptical as reports of DisCos demanding payment for replacements persist.

Consumer Advocates Criticize DisCos’ Approach

Adeola Samuel-Ilori, National Coordinator of the All Electricity Consumers Forum, attributed the delay in meter upgrades to consumer negligence but criticized DisCos for exploiting the situation. He warned against any attempts to violate consumer rights and urged NERC to enforce stricter oversight of DisCos.

What’s Next for Affected Consumers?

As the deadline passes, consumers face limited options: enduring estimated billing, purchasing meters independently, or waiting for DisCos to provide replacements. Advocacy groups have called for improved consumer education and stricter penalties for non-compliant DisCos.