Replace prepaid meters without charging consumers, FCCPC tells DisCos

THE Federal Competition and Consumer Protection Commission, FCCPC, yesterday, urged Electric Distribution Companies, DISCOs, to carry energy consumers along before classifying them into bands and adhere strictly to industry regulations on billing unmetered consumers.

FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr Tunji Bello said this at a stakeholders’ meeting at the FCCPC headquarters in Abuja.

Representatives of the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), various electricity distribution companies (DISCOs), and Unistar Hitech Systems Limited attended the meeting.

He urged them to address pressing metering issues impacting Nigerian consumers.

Citing noncompliance with NERC’s order, FCCPC directed Ikeja Electricity Distribution Company, IKEDC, and Eko Electricity Distribution Company, EKEDP, to immediately halt their replacement of Unistar prepaid meters.

His words: “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, among others.

“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.

“The FCCPC Act (FCCPA) and current NERC regulations grant consumers rights, including rights to fair treatment and transparent billing.

“However, complaints reveal that consumers are often forced to pay upfront for meters without reimbursement, contrary to established guidelines under the NERC Meter Asset Provider and National Mass Metering Regulations 2021, which stipulate reimbursement through energy credits.

“Furthermore, customers with faulty meters are randomly placed on estimated billing by some DisCos, a practice that is prohibited by NERC.”

Bello said although Nigeria faces power shortages, it does not justify systemic abuses against consumers.

“Going forward, regulatory breaches in the industry will be met with immediate corrective action.

“DisCos have no excuse for failing to follow proper procedures, including reimbursement for meter purchases and ensuring faulty meters are promptly replaced.”

Also speaking, the Assistant Manager at NEMSA, Okeme Obiabo, said it is important the DisCos follow due process for meter replacement.

Obiabo said: “We’ve been addressing obsolete meters, and distribution companies must adhere to the procedures for replacing them. Meter testing and certification are essential, and DisCos are responsible for carrying out these replacements and ensuring that faulty meters are replaced promptly.”

On his part, head of consumer engagement at NERC, Zubair Babatunde reiterated the commission’s commitment to consumer protection, specifically regarding the replacement of obsolete meters.

Replace prepaid meters without charging consumers, FCCPC tells DisCos

Fuel retailers accuse Dangote refinery of targeting monopoly 

Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has accused Dangote Petroleum Refinery of trying to muzzle competitors and working towards monopoly.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) had earlier said petrol from the refinery was more expensive than imported product.

But Dangote refinery said its ex-depot price of petrol is N990 per litre for trucks and N960 per litre for ships.

It also said any oil marketer selling petrol cheaper than its rate must be importing substandard products.

PETROAN spokesperson, Joseph Obele, in a statement on Monday, said the accusation of importing substandard products by Dangote refinery is “his usual gimmick for maintaining monopoly”.

According to the group, consumers get the best value for pricing when competition is at its peak, hence competition should be encouraged.

“PETROAN has concluded plans with her foreign Refinery counterparts and financial partners to import the best quality of PMS (petrol) and then sell far lesser than the present selling rate of PMS in Nigeria,” the retailers said.

The group said, “We planned to enter the market before December 2024, pending the approval of our import permit licence by the regulatory agency and access to foreign exchange from CBN at the official rate.

“Before now, Dangote Refinery has refused to make public her selling rate of PMS until IPMAN and PETROAN announced readiness to sell lesser.

“The rate of N990 as announced by Dangote refinery was inconsiderate base on the fact Dangote Refinery enjoyed massive concession for accessing foreign exchange during the construction of the refinery.”

Profit margin 

PETROAN said the core determinant for setting the price is the cost of production and margin.

“But this wasn’t the case for the determinant of PMS price by Dangote refinery as they said the parameter was comparison with the international selling rate at the global market.

“A nation that gave you a yet to be disclosed concession for foreign exchange which was highly criticised by financial experts, such a country pricing template shouldn’t have been templated by the selling rate at the international market but rather it should have been cost of production plus fair margin.

“Goods from the China markets are not selling as high like goods from the America market because the cost of production differs.

“The allegations that PETROAN will import inferior products and saying also that an international company is trying to establish a PMS blending plant in Lagos are all strategies for Dangote Refinery to push others out of the market with a view to achieving monopoly for exploitation.

“Few months ago the CEO of Dangote Refinery said NNPC LTD was importing inferior petroleum products, that his own was far better than what NNPC Ltd was selling to marketers.

“In another press conference he said the refinery at Malta was just a blending plant and not a refinery.

“Evidences available showed that diesel (AGO) as a deregulated product was selling less than N800 in Nigeria market few weeks before the commencement of AGO production by Dangote Refinery, at the entrance of AGO market by Dangote refinery we witnessed a rapid surge above N1,000 as against the the perception of a ‘Salvaging Refinery’.”

PETROAN said Dangote refinery made the allegations “with the objectives of closing the doors for other operators so as to enjoy monopoly”.

Foreign firm hires depot to blend substandard petrol in Nigeria — Dangote

Dangote Petroleum Refinery, yesterday, alleged that an international trading company has hired a depot to blend substandard petroleum products in Nigeria.

The company also said its petrol is cheaper than the one imported into the country by NNPCL.
It said the international trading company plans to mislead unsuspecting local buyers in efforts to compete with its product in the domestic market.

The refinery also called on the government to protect domestic industries to provide jobs and grow the economy.

Group Chief Branding and Communications of Dangote Group, Anthony Chiejina, who raised the alarm in a statement yesterday, said: “An international trading company has recently hired a depot facility next to the Dangote Refinery, to use it to blend sub-standard products that will be dumped into the market to compete with Dangote Refinery’s higher quality production.

“This is detrimental to the growth of domestic refining in Nigeria. We should point out that it is not unusual for countries to protect their domestic industries to provide jobs and grow the economy. For example, the US and Europe have had to impose high tariffs on EVs and microchips to protect their domestic industries.

‘Disregard deliberate disinformation’

“While we continue with our determination to provide affordable, good quality, domestically-refined petroleum products in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty.

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“We had lately refrained from engaging in media fights but we are constrained to respond to the recent misinformation being circulated by IPMAN, PETROAN, and other associations.

“Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive relative to the price of imports.

“If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing sub-standard products and conniving with international traders to dump low quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles.