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”.

Band A electricity customers complain of high tariff, seek review

Many electricity consumers in the Federal Capital Territory (FCT) on Band A, have appealed to the Federal Government to lower the high tariff amid the economic hardship.

The News Agency of Nigeria (NAN) reports that Band A customers are those who enjoy at least 20 hours of electricity daily and are expected to pay N209.5/kilowatts per hour (KWh).

The consumers who live at Lugbe, Area 10, Apo resettlement area, and environs spoke with NAN in Abuja on Sunday.

They said that Band A was okay because they enjoy constant power supply but added that the tariff was too high and so could not cope with the present situation.

Mrs Amen Odigie, a civil servant residing in Lugbe, said that she found herself paying so much to enjoy power supply, which was okay.

Odigie said that what she paid for electricity in the two-bedroom flat she occupied was more than N30,000 in a month.

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“This is really telling on me, as what I earn as salary cannot go anywhere with the present economic hardship in the country.

”I want to appeal to the government to review the high electricity tariff as this Band A is taking most of my income, ” she said.

Mr Ugochukwu Okafor, also residing in Lugbe, said that the electricity tariff for Band A customers was too high.

Okafor, a Vulcaniser, said that his income in a month could not pay for the Band A tariff.

According to him, he wants the Federal Government to do something about the Band A tariff, as it is too high, in view of the present hardship in the country.

Band A electricity customers complain of high tariff, seek review