Millions of Nigerians Risk Estimated Billing as Meter Upgrade Deadline Looms

As the deadline for the mandatory meter upgrade looms, millions of electricity consumers across Nigeria are facing the threat of being forced onto estimated billing, or worse, left without power altogether.

The Nigerian Electricity Regulatory Commission (NERC) has warned that from November 24, 2024, customers who fail to update their prepaid meters will no longer be able to recharge.

This follows a government initiative aimed at ensuring that all meters comply with the latest technological standards.

Industry experts warn that as many as three million Nigerians, out of the 5.9 million metered customers, could be impacted by the policy, with many risking a return to the much-criticized practice of estimated billing.

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Despite several reminders from NERC and the Distribution Companies (DisCos), a large number of consumers have yet to take action, raising concerns about the execution of the program.

In a recent statement, NERC reiterated the urgency of the upgrade process, assuring customers that it is both easy and free. “Have you updated your meter yet? From November 24, 2024, you may not be able to recharge your meter without updating.

However, updating is easy and free,” NERC said in a post on its official social media handles. The Commission further emphasized that the upgrade will not affect the units in the meter and will not result in faster consumption rates.

However, many consumers are reporting significant technical issues with the upgrade process, with some meters rejecting the Key Change Tokens (KCT) required for the upgrade.

Customers from Ikeja Electric and Port Harcourt DisCos have expressed frustration, with some claiming to have been without electricity for weeks or unable to upgrade due to persistent errors in the system.

“I’ve been in the dark for over two months, and they keep telling me to upgrade my meter, but it doesn’t work,” said Dare Oguntuase, an Ikeja Electric customer.

Similarly, Esther Madu, a consumer in Port Harcourt, has struggled with her meter rejecting the upgrade tokens. “I’ve recharged more than N8,000, but the meter refuses to accept the tokens,” she lamented.

The upgrade process has not been without controversy. The introduction of new technology has led to widespread confusion, particularly for users of older meter brands, such as Unistar.

Ikeja Electric had informed consumers that all Unistar meters would be phased out by November 14, 2024, prompting outrage among users who were asked to pay for replacements. Unistar Hitech Systems Ltd, however, maintains that their meters are fully upgradeable and compatible with the new system.

In response to the ongoing complaints, the Federal Competition and Consumer Protection Commission (FCCPC) intervened, urging DisCos to halt the replacement of Unistar meters and adhere to the regulations prohibiting customers from being charged for meter replacements.

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Tunji Bello, Executive Vice Chairman of the FCCPC, expressed concern over consumer exploitation, particularly in cases where consumers were forced to pay for new meters. “DisCos must replace faulty or obsolete meters free of charge,” Bello emphasized.

Despite these interventions, there are growing concerns that the DisCos are not fully complying with these directives.

A growing number of consumers have reported being switched to estimated billing after their meters were removed for alleged upgrades, with some receiving exorbitant bills.

One such case involved a property manager in Ikeja, whose tenants were charged N268,000 for a month’s estimated electricity consumption, despite the absence of any air-conditioning units.