The management of Benin Electricity Distribution Company (BEDC) Electricity Plc has commenced the implementation of a new Service-Based Tariff structure effective from Tuesday, September 1st, 2020.
The new dispensation Service-Based Tariff (SBT) contained in a Nigerian Electricity Regulatory Commission (NERC) Order signed by its Chairman, Prof. James Momoh, is a leap into a regime where customers of BEDC across the franchise states of Delta, Edo, Ekiti, and Ondo will be migrated to a threshold where there will be continuous improvement in the quality of service delivery that the company offers.
According to the management, the new SBT will allow customers enjoy a certain minimum of hours of power availability and also pay for appropriate rates for services rendered based on this regular availability as the new SBT essentially affects customers that live in areas where BEDC promises to provide electricity for at least 12hours per day.
BEDC says it recognizes that a firm improvement in electricity supply would require investments in reinforcing feeders, transformers, protection equipment, and other components, hence a Service-Based Tariff shall provide a financial remedy to bolster improved service defined in terms of hours of supply indicated by availability, reliability, and quality whilst recognizing the changes in macroeconomic indices – forex, inflation, cost of capital, etc.
To operationalize the new service dispensation, customers will be disaggregated into various clusters/bands based on these guaranteed hours of service and using number of hours of daily availability as a measure to determine the tariff rates with those with more power paying more than those with less power.