People & Money

Benin Disco to Implement Service-Based Tariff

Electricity customers in Benin and environs will have to pay for electricity based on consumption.

The new decision is in line with the Service-Based Tariff introduced on September 1, the Benin Electricity Distribution Company said on Friday.

The Executive Director of Benin Disco, Abu Ejoor, said the new tariff regime was in line with the outcome of customers’ feedback from the tariff review consultations held by the Nigerian Electricity Regulatory Commission and DisCos at various locations across the country earlier in the year.

Ejoor said the feedback mechanism put in place showed that customers were willing to pay appropriate rates if there was improved quality of service.

Read: DisCos to Pay For Electricity Rejected, Says NERC

He said, “Under the new service dispensation, customers have been disaggregated into various clusters/bands based on hours of supply and using number of hours of daily availability as a measure to determine the tariff rates.

“Those in Band A will enjoy a minimum of 20 hours supply; Band B customers will enjoy a minimum of 16 hours supply; Band C customers will have a minimum of 12 hours supply, Band D Customers will have a minimum of eight hours supply, while the Band E consumers will have minimum of four hours supply.

“The new tariff regime also provides that customers can move to upper bands of more power availability as their quality of service improves and accordingly pay the appropriate tariff,” he added.

Ejoor added that the Service-Based Tariff is a leap into a regime where customers across the franchise states of Delta, Edo, Ekiti, and Ondo would be migrated to a threshold where there would be continuous improvement in the quality of service.

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