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Upgrade: Discos may move three million subscribers to estimated billing

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Except there is a last-minute intervention, about three million electricity customers may be forced into estimated billing or outright darkness due to their failure to upgrade their prepaid meters.

This is as a consumer group estimated that half of the 5,993,340 metered customers would be caught in the web of the government policy.

But another group opined that anybody who has not upgraded his meter until now should be one of those Nigerians who like to display lackadaisical attitudes towards government policies, saying the upgrade started last year.

In the past 10 days, the Nigerian Electricity Regulatory Commission has repeatedly reminded Nigerians of the need to upgrade their meters.

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.

“DisCos have already commenced issuance of two free Key Change Tokens which will update your meter.

“The update will not affect the units in your meter, nor will it make your meter run faster than usual. Contact your DisCo for more information,” the NERC said in a post on its handles.

As the NERC continued to sensitise consumers to the meter update, most of the distribution companies appeared unbothered until the exercise elapsed on Sunday.

As of yesterday, there were various complaints from customers who have yet to update their meters.

While some customers said they encountered technical glitches in their efforts to update their meters, others complained of a lack of electricity and many said they got feedback that their meters could not be updated and they had to be replaced.

Earlier, the distribution companies in Lagos told their consumers that all Unistar meters would be phased out by November 14 2024 due to Token Identifier rollover.

Customers using Unistar meters were asked to pay for the replacement of their meters, sparking outrage from affected customers.

The Unistar meter producers denied claims that their meters are outdated. They stated that their meters utilising the card meter technology are fully upgradeable and compatible with the STS meter technology.

The Federal Competition and Consumer Protection Commission also intervened, urging the DisCos to halt their replacement of Unistar prepaid meters.

The FCCPC’s Executive Vice Chairman and Chief Executive Officer, Tunji Bello, at a recent meeting held at the FCCPC headquarters in Abuja and was attended by representatives from the NERC, the Nigerian Electricity Management Services Agency NEMSA, various electricity distribution companies and Unistar Hitech Systems Limited, expressed concern over practices that require consumers to pay upfront for meters without reimbursement, calling it a direct violation of the NERC Meter Asset Provider and National Mass Metering Regulations 2021.

He also noted that DisCos frequently places consumers with faulty meters on estimated billing, saying this is prohibited under NERC’s regulations.

Bello cited an example of a complaint received by FCCPC from an Ikeja Electric customer, who had expressed frustration at being asked to replace a functioning meter at a significant personal cost.

To prevent potential exploitation, FCCPC directed that all meter replacement processes be conducted transparently, with costs borne by the DisCos and not passed on to consumers.

Bello stressed that FCCPC would enforce strict compliance with these regulatory requirements to protect consumers from arbitrary charges and estimated billing.

The NERC’s Order mandates that DisCos must prioritise metering for unmetered customers under the National Mass Metering Programme and follow strict guidelines for replacing faulty or obsolete meters.

“Furthermore, DisCos are prohibited from placing customers on estimated billing due to delays in meter replacement, as new meters must be installed immediately upon removing any faulty or obsolete unit,” the FCCPC boss said.

However, it appears the DisCos did not heed the FCCPC’s directive FCCPC as complaints abound from customers about being asked to pay for the replacement of meters that cannot be upgraded.

Reacting to this, the NERC issued a statement warning DisCos to desist from asking customers to pay for meter replacement.

The commission said no customer should be made to pay for the replacement of any faulty or obsolete meter.

According to a statement last week, the regulator said it was aware that some DisCos had instructed their customers to pay for the replacement of their faulty or obsolete meters.

“The Nigerian Electricity Regulatory Commission is aware that some Distribution Companies have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas. This instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete end-use Customer Meters in the Nigerian Electricity Supply Industry,” the NERC said.

According to the regulator, the order states that no metered customer should be forcefully migrated to estimated billing.

It was also emphasised that any customer’s meter adjudged to be obsolete or faulty must be replaced free of charge by the DisCo, provided the damage was not caused by the customer.

“The Order clearly states that no customer with a meter should be forcefully migrated to estimated billing. If any customer’s meter is adjudged by any DisCo to be obsolete or faulty, it is the responsibility of the DisCo to replace the meter free of charge, provided that the fault was not caused by the customer,” it was stated.

Speaking with The PUNCH earlier, the Vice Chairman of NERC, Musiliu Oseni, stated that meters that are not upgradable will need to be phased out.

“Operationally, if they say some meters are not upgradable, they can decide to phase them out. But as they remove the meters, based on the rule, they must replace them. It is the responsibility of the DisCos to replace them,” he said.

He emphasised that during the phase-out process, no customer should be placed on estimated billing or be denied access to electricity.

He pointed out that if customers were asked to purchase meters under the MAP framework, DisCos must provide a clear mechanism for refunds, as they are obligated to refund the customers.

However, customers who spoke to our correspondent lamented that the DisCos have been doing the contrary.

A customer of the Ikeja Electric complained of how five meters were phased out in a property of eight flats and the flats were placed on estimated billing, with each asked to pay N268,000 per month.

“In a property I manage at Ikeja, a block of eight flats, IKEDC began by phasing out meters. Five meters have been phased out, and the trend continues. They asked individual flats to apply for direct connection to the pole with monthly estimated bills. Then, each flat should apply and pay for new meters they never brought. The estimated bill now charged for one month per flat is N268,000. How come a three-bedroom flat will consume N268,000 per month? Some don’t even have an air conditioner.

“Three tenants each just received the same bill this week, regardless of their consumption. They went to the IKEDC office to complain, and the officials told them to go and pay their bills,” the property manager complained.

Speaking in an interview with our correspondent, the Executive Director of the Electricity Consumer Protection Advocacy Centre, Princewill Okorie, expressed displeasure over the number of consumers that would be plunged into estimated billing over the meter upgrade.

According to Okorie, more than half of the current metered customers would lose their meters and join the over 7 million unmetered ones.

“More than half of metered customers will be subjected to estimated billing by this policy. The same meter that people are crying for so that they can know what they are consuming, you want to frustrate them with this strategy. You want to bring this strategy to make more consumers go into estimated billing. Are the DisCos obeying the estimated billing methodology approved by NERC?

“So, this is an indirect way of putting Nigerians underestimation. And I know that, without a meter, whether you use light or not, they will give you a bill. There was a grid collapse for about five days; the moment light came, those unmetered consumers were made to pay as if there was an electricity supply for 24 hours. It is wickedness against the poor,” Okorie lamented.

The consumer rights activist wondered what the FCCPC is doing to ensure electricity consumers are protected from all forms of exploitation.

“As far as I am concerned, the government should take decisive steps to protect Nigerians against the exploitative tendency of the distribution companies and NERC. The regulator should be investigated, and if possible, sanctioned.

What is the FCCPC doing? Are they aware that consumers are about to be subjected to this? How is the FCCPC protecting consumers? Was it not the consumer protection commission that spoke the other day, and the DisCos said they have suspended it, now that they want to do this, what is the commission saying? How many metered and unmetered consumers do the FCCPC know?” he queried.

Customers share experience

A customer of the Ikeja DisCo, Dare Oguntuase, reported to NERC, his unsuccessful efforts to retrieve his meter allegedly taken away by the DisCo in September.

“NERC should do more than advocacy. Our Discos are irresponsible, fraudulent, and highly unpatriotic. Ikeja Electric is the worst. I have been in the darkness for 63 days now and still counting. My meter No. 47001599126, was retrieved for repair/replacement since 20th September,” he said.

Esther Madu, an X user, said her meter was not accepting the token for the upgrade.

“Someone please help me. I have recharged more than N8,000 on my prepaid meter but my meter has been rejecting the token since Monday. Therefore, I haven’t been able to use electricity in my home since Monday,” she cried out.

A customer of the Port Harcourt DisCo, Engr Gabby, reported, “My meter is rejecting the KCT given to me and I have dropped a complaint to the PHED, to date, no solution.”

Patrick, also under the Port Harcourt DisCo, pleaded with the regulator to extend the deadline, saying his area has been out of power supply due to vandalism.

“Our transformer armored cable was vandalised. PHED refused to fix it. We are contributing N6,000 each to replace the cable. Try to extend this deadline,” Patrick told NERC on X.

Olutosin Runsewe queried why old meter users cannot upgrade their meters.

When asked if she had been able to upgrade her meter, Runsewe replied, “No, they said Unistar meters can’t be upgraded.”

Another customer of the IKEDC, Ikhade Agboghayemeh, shared his chat with the company, which told him to request a meter replacement when he sought information on how to update his Unistar meter.

A customer of the Abuja DisCo simply identified as Austine reported that his faulty meter was not repaired almost a year ago.

“Please intervene in my case with the Abuja Electricity Distribution Company. My meter has been faulty for almost a year now. All my efforts to get them to repair it have failed,” Austine begged NERC.

Replying to calls for an upgrade, an electricity customer said, “You guys are funny, still not enough houses metered. You want to out-date existing meters after upgrading without any plans of replacement. The DisCos are making customers pay through their noses for meter replacement. If you don’t pay, they don’t change it or they place you on estimated billing.”

Also, a consumer identified as Mathew CB, voiced his frustration in Enugu.

“How do we upgrade the meter when we don’t have light here in Emene Enugu State for weeks? You can find out from Enugu DisCo why they’re frustrating people living in this part of Enugu State,” Mathew stated.

Alabi Alapa was concerned about whether or not the illiterates understand the process of meter upgrade, asking, “Do you mandate the DisCos to educate all these old women who live alone and are illiterate?”

In his case, another electricity user, Ayo Olaleye, noted that the response he got while trying to update his meter said, “Your meter is not qualified for TID Rollover.”

Meter replacement may continue till March 2025 – DisCos

In a recent interview, the Executive Director, Research and Advocacy, the Association of Nigerian Electricity Distributors, Sunday Oduntan, assured Nigerians that the DisCos would replace their obsolete or faulty electricity meters at no cost to them.

“Any meter that has lost its integrity, either by way of being obsolete or by way of it not conforming to our system. We will need to remove, retract, and replace those meters. The issue of cost is what I now have to make very clear. For Nigerians, be assured that when we come to your doorstep, we retrieve your meter, we shall replace it at our own cost and at no cost to you,” Oduntan disclosed.

He added that this became necessary for cost recovery.

“One of the reasons why we want to retrieve some meters and replace them is because they are making us lose a lot of money. In a particular Disco, we have 10,927 of those meters. Over time, only about 3,200 of them came out to buy credit. The others, we don’t know where they are. That’s a case of serious bypass. Any meter that makes it easy for my customers to bypass and steal energy, I will remove and replace it.

“What Nigerians don’t want is for me to give them further burdens. So, let it be a matter between me and my regulator. My regulator said, ‘Replace those meters at your cost.’ No problem. When I sit down with my regulator, what I need to ask is, I’ve replaced those meters, so what happens? Because I’m not the one that produces or supplies meters. The suppliers need to be paid, and to pay them, somehow the cost has to be recovered,” he posited.

Oduntan revealed that the meter replacement exercise would be done between now and the first quarter of 2025.

He emphasised that it is not in the interest of the DisCos to put customers on estimation because it leads to arguments between distributors and customers, who he also accused of wasting energy when not metered.

Customers blamed

Meanwhile, the National Coordinator of All Electricity Consumers Forum, Adeola Samuel-Ilori, said anyone who has not updated his meter should have himself to blame.

Samuel-Ilori said the upgrade of meters started last year and all consumers should have upgraded their meters by now.

According to him, an extension was done through his group’s continuous engagement with NERC.

“I believe with the type of engagement and enlightenment on it to consumers since last year, many ought to have done it without any hassles.

“If any customer has not done the upgrading till now, it may be out of the lackadaisical attitude of some Nigerians who like to wait till the last minute or until punitive measures are taken before they do the needful.

“I will not fold hands and watch the DisCos do anything that will tamper with consumers rights, even if it means approaching the court of competent jurisdiction. But this meter upgrade is not about sending many to the estimated billing system,” he stressed.

Contacted, a Senior Public Relations Officer at the Federal Competition and Consumer Protection Commission, Nicholas Utsalo, told our correspondent to send an official email, which has not been responded to since Saturday.

Our correspondent learnt that those whose meters were not updated would either choose to be in darkness or revert to the estimated billing system if they cannot wait till the day their DisCos will consider them for a new meter.

Likewise, individuals may decide to buy their own meter if it is taking too long to get a free device from their utility companies.

PUNCH NEWSPAPER

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FALSE CLAIMS STEMMING FROM MISINTERPRETED BOARDING VIDEO POST

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Our attention has been drawn to a video circulating online and on social media on the boarding of Air Peace passengers on flight P47123 from Abuja to Lagos on December 20, 2024. This report is false, mischievous and misleading.

The false video post was designed by some faceless individuals with the intent of misleading the flying public to cause confusion and distraction for management of Air Peace and its stakeholders including the regulators.

On the day in question, there were flight delays because of poor weather conditions, specifically harmattan-induced haze and fog, which is common at this time of the year, and which significantly limits visibility and impacts flight operations nationwide.

To ensure that passengers continued their journeys with minimum disruptions, Air Peace deployed three aircraft to Abuja to evacuate all the passengers. While processing them for their flights at the boarding gate, passengers overwhelmed both the FAAN and boarding officers and rushed to the airside. Duty managers and ramp officials then had to mount barricades in front of the motorized step to differentiate passengers on flights.

While we empathize with you, our loyal customer, we condemn in very strong terms the misinformation, insults and deliberate falsehood disseminated in the video post. Such representations are not reflective of our values or operations.

There is no truth in the allegation, and we urge the public to disregard the report in all its entirety.

We appreciate your understanding and patience during this period and sincerely regret any inconvenience these delays may have caused you. The safety of our passengers and crew is our utmost priority.

At Air Peace, safety is not just a priority but a fundamental precondition for all our activities. We remain committed to maintaining safe and timely operations.

For further assistance or inquiries, please contact us via callcenter@flyairpeace.com.

 

 

SIGNED

Dr. Ejike Ndiulo

Head, Corporate Communications

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Christmas, Cash Scarcity and Attacks against CBN’s Proactive Stance – Toni Kan

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Let us look at a few figures……..

Nigeria’s population is put at a little over 200 million people while the UK population is about 68 million. This means that the Nigerian population is about three (3) times that of the UK.

As at June 2023, the UK banking system had about 49,421 Automatic Teller Machines and almost 2.3 million Point of Sales Terminals.

By contrast, the Nigerian banking system had a little over 22,600 ATMS according to TechCabal and is projected to reach 29,000 by 2029 according to Statista. Conversely, Nigeria boasted 1,665,664 POS terminals as at December 2022. Meanwhile, figures attributed to Inlaks, which is described as Nigeria’s biggest ATM operator, suggest that Nigeria needs at least 60,000 ATM machines to serve its population of over 200 million.

Where is all this going? Well to borrow a phrase from the comedian, Jeff Foxworthy; hold my beer, sir!

Those who know me well know what my favourite Igbo proverb is. It goes something like this in translation – “the disease that gives you warning, does not kill you!” It is a proverb that underlines the imperative of proactivity, what the Igbo people might call igba mbo.

So, I was really pleased when I read that the Central Bank of Nigeria (CBN) was taking a proactive step to ensure that there is no cash scarcity this Christmas.

Nigerians love cash and that love can become obsessive and reach fever pitch at festive periods. Have you been to Abeokuta during Ojude Oba? Or to Kano during the Durbar? Or Onitsha during Ofala? Those are regional festivities. So, you can imagine what happens at Christmas!

All efforts at driving a cashless policy and economy seem to collapse when festivities come around the corner and this year, the CBN was quick to take proactive action weeks before the festivities reach fever pitch. But the apex bank’s interventions seem to be having unintended consequences even though as at the time of writing this, the apex bank had put out three (3) different circulars and one press release around the issue.

First, is a not-so-surprising pushback from the banks and then a seeming lack of understanding by the general public no thanks to rampant mis-information.

The issue of cash scarcity around the Christmas period worsened under the sway of Godwin Emefiele at the CBN. The fall-out from the disastrous naira redesign he superintended over at the apex bank continues to haunt our banking vaults but Olayemi Cardoso and team are focused on making sure we turn that dark corner.

Let us begin with the first circular dated November 29, 2024: “Cash Availability Over the Counter in Deposit Money Banks (DMBs) and Automated Teller Machines (ATMs).” The circular had two sections: DMBs were directed to ensure efficient cash disbursement to customers Over the Counter (OTC) with the CBN insisting that it will enforce the directive and ensure compliance.

Secondly, members of the general public were encouraged to report instances where they are unable to get cash Over the Counter or through ATMs. The CBN ended with a list of 37 email addresses and phone numbers across the 36 states and FCT for reporting issues.

On paper, it looked like Nigerians and the cash worries were all sorted this Christmas but it didn’t take time for the expected pushback to occur. News reports began to circulate of long queues at banks and of ATMs struggling to dispense more than N10,000. “NAN reports that long queues have emerged at ATM stands around the city as residents struggle to have access to cash…Meanwhile POS operators are currently taking advantage of the situation to demand exorbitant charges on transactions.”

While Nigerians were still trying to make sense of the reason behind the long queues, another report had an official of the Association of Senior Staff of Banks, Insurance, and Financial Institutions (ASBIFI) pointing fingers. According to the report, “ASSBIFI President, Olusoji Oluwole, told the Punch that “Banks have only two sources of cash: the CBN and retailers. The CBN has not met banks’ demands, and retailers often sell cash for profit, making it harder for banks to access funds.”

As if in response to the charge, the apex bank responded “with their full chest” as we say on social media with a December 13, 2024 circular – Updated Penalty on Inappropriate Cash Disbursement Practices by Deposit Money Banks (DMBs) in which it condemned the “illicit flow of mint banknotes to currency hawkers and other unscrupulous economic agents that commodify naira bank notes thus impeding efficient and effective cash distribution to banks’ customers and general public.”

Giving bite to the circular the CBN said any bank found culpable of “facilitating, aiding or abetting, by direct actions or inactions, illicit flow of mint banknotes” would be fined N150m and then hit with the full weight of the relevant provisions of BOFIA 2020.

This time no pointing fingers were seen but the CBN was not done. Eager to completely squelch rumours around “the validity or lack thereof of the old ₦1000, ₦500, and ₦200 banknotes” the refusal of which was contributing to the long queues, the CBN issued a press release shutting it down: “The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old ₦1000, ₦500, and ₦200 banknotes currently in circulation….the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the ₦1000, ₦500, and ₦200 denominations of the Naira indefinitely.”

The third circular from the CBN which it said was in line with its “ongoing efforts to advance a cash-less economy” seems to have hit a raw nerve among Nigerians who, as we have already noted, love their cash even though it is now an offence to spray the naira.

News outlets also seemed to also get it wrong. The CBN circular of December 17, 2024 did not put a limit on how much cash you and I can withdraw from banks. The limits imposed in the circular titled – CIRCULAR ON CASH-OUT LIMITS FOR AGENT BANKING TRANSACTIONS – are “for agency banking operations” and as reported by TheCable is among interventions intended to address “identified challenges, combat fraud and establish uniform operational standards across the industry.”

Now, can I have my beer back as I attempt to outline how easily well-intentioned policies are rubbished by that euphemistically named malady known as the “Nigerian factor”.

The ASBIFI official was quick to point fingers even though simple logic can show that Over the Counter cash scarcity and at ATMs has little to do with the CBN or its cash distribution operations but with our Nigerian any-how-ness.

Let’s consider this. How is it that banks cannot fill up 22,600 ATMS, most of which are within or in close proximity to their branches but can afford to give cash to 1.6m PS operators? Doesn’t this seem to suggest that someone is out to make sure that the ATMs don’t have cash while the PoS operators continue to make a killing?

And why does it seem right that Nigerians should continue to pay between N250 and N400 per N10,000 withdrawals to PoS operators when ATM charges are far lower at N35 and only after you have made multiple withdrawals from other bank ATMs?

Oh, bankers have said ATMs are difficult to maintain on account of several factors and this takes us back to the figures we shared from the UK. Of the 49,421 ATMs in the UK, “78% were free to use” during the period under reference. So, why do we always talk about maintenance when it comes to Nigeria? Imagine if we paid N10 per ATM transaction, wouldn’t that be better than paying N250 to a PoS operator for every N10,000 withdrawn?

And for context, in 2014, data on various e-payment channels indicated that Automated Teller Machines (ATMs) remained the most patronised payment mode in Nigeria accounting for 89.7% of all electronic transactions with PoS transactions accounting for just 4.58 per cent. Today, the reverse is the case and the question to ask remains; what changed? The answer has something to do with financial inclusion but that is a topic for another day.

As you ponder that poser, ask yourself why is it always difficult to get mint bank notes over the counter in the banks meanwhile, step into any event center and you will see some hawker waving bright new notes in your face. Surely, they don’t get those notes from the CBN.

When the CBN referenced the Supreme Court ruling granted on November 29, 2023 to the effect that the old notes are still legal tender, their X Formerly Twitter page was filled with bile. But what many are failing to contend with is that the current leadership is only trying to make sure the mess they inherited doesn’t get worse.

As we prepare for Christmas and the New Year the advice is simple; go to your bank and ask for your money or withdraw from the ATMs and if you suspect any funny business, email or call the hotlines provided by the CBN.

Say no to any-how-ness this yuletide.

 

Toni Kan is a PR expret and financial analyst.

 

 

 

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Aviation Minister Leads Delta APC Leadership To National Chairman, Advocates Unity Ahead of 2027 Elections

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The Honourable Minister of Aviation and Aerospace Development, Olorogun Festus Keyamo SAN, today, led the leadership of the All Progressives Congress (APC) in Delta State, to the National Chairman of the APC, His Excellency Dr. Abdullahi Ganduje, at the APC National Headquarters in Abuja.

 

During the meeting, the Delta APC leaders briefed the National Chairman on the current state of the party in the state and the ongoing efforts to reconcile party members. They presented the report of the Reconciliation Committee, which has been approved by the Delta State APC State Working Committee (SWC) and earlier submitted to the National Chairman.

The delegation emphasized the importance of collaboration, stating that the era of a one-man leadership style in Delta APC is over. They reaffirmed their collective commitment to working as a united team to reposition the party and strengthen its prospects ahead of the 2027 general elections. This new direction was evident in the composition of the high-powered delegation that visited the National Chairman.

 

In his response, the National Chairman, Dr. Abdullahi Ganduje, commended the Delta APC leadership for their efforts to foster unity and ensure the party’s victory in future elections. He assured them of his commitment to work with Delta APC leaders, including those absent from the meeting, to build a united and formidable front. During the meeting, Dr. Ganduje also spoke with Delta State APC Chairman, Elder Omeni Sobotie, who was unavoidably absent due to health reasons, and wished him a swift recovery following his recent surgery.

 

The delegation to the meeting comprised prominent leaders of the Delta APC, including: Olorogun O’tega Emerhor, OON-Founding Leader of APC in Delta State,

Elder Godsday Orubebe- Former Minister,

Senator Ede Dafinone,

Senator Joel Thomas-Onowakpo,

Rev. Francis Waive- Member, House of Representatives and

Hon. Victor Ochei-former Speaker, Delta State House of Assembly.

The meeting was concluded with a renewed sense of purpose among the Delta APC leaders and a shared commitment to repositioning the party for electoral success in 2027.

 

 

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