Politics

Benin DisCo Gets Fresh Licence, Faces Tougher Regulation

The Edo State Electricity Regulatory Commission (ESERC) has issued a provisional electricity licence to Benin Electricity Distribution Company (BEDC) Plc.
 
 
Commissioner for Power, Paul Usenbo, who disclosed this
at the licensing ceremony in Benin, described the development as a major step toward effective implementation of Edo’s electricity market.
 
 
Recall that under the Electricity Act 2023, BEDC can no longer operate in Edo under its former federal licence.
 
 According to the Act, the company must now obtain and operate under a licence issued by ESERC, which regulates electricity distribution within the state.
 
 
ESERC will regulate BEDC’s operations, service quality and resolution of consumer complaints across Edo.
 
 
Usenbo said the licensing framework was designed to promote responsible participation by qualified operators and attract sustained private-sector investment.
 
 
He said the framework would also ensure consumers, businesses and industries benefited from improved access to reliable and affordable electricity.
 
 
The commissioner congratulated BEDC on securing the provisional licence and urged it to deepen investment in Edo.
 
 
He also urged the company to comply fully with the licence conditions and prioritise improved service delivery to consumers across the state.
 
 
Usenbo commended the ESERC chairman and members for laying the foundation for effective regulation of the emerging electricity market.
 
 
Also speaking, ESERC Chairman, Shittu Shaibu, said the commission’s mandate extended beyond issuing licences to operators.
 
 
Shaibu said electricity operators would be held accountable for compliance with regulatory requirements and service-delivery standards.
 
 
He said the new regulatory regime would strengthen accountability, improve service quality and ensure faster resolution of consumer complaints.
 
 
According to him, ESERC will adopt a firm, fair and law-guided approach to regulating the electricity market.
 
 
Shaibu said the success of the new regime would ultimately be reflected in improved reliability, responsiveness and overall electricity service quality.
 
 
Receiving the provisional licence, BEDC Managing Director and Chief Executive Officer, Jonathan Lawani, welcomed the development and pledged collaboration with ESERC.
 
 
Lawani said BEDC was prepared to fulfil the remaining requirements for obtaining its full licence when due.
 
 
He said the company had already obtained the necessary licences in Ekiti and Ondo states after meeting relevant regulatory requirements.
 
 
Lawani commended the Edo Government for appointing what he described as a competent regulatory team.
 
 
He, however, called for collaboration rather than confrontation between BEDC and ESERC.
 
 
He urged the commission to remain a fair and impartial regulator while allowing healthy competition among market operators.
 
 
Lawani said regulation should provide a level playing field and avoid situations where operators compete with the regulator or government institutions.
 
 
He reaffirmed BEDC’s commitment to working with the state government, ESERC and other stakeholders to provide reliable, affordable and sustainable electricity.
 
 
Meanwhile, the Acting Chief Executive Officer of BEDC Subco, Henry Onovwaka, said his primary responsibility was ensuring a smooth and efficient transition.
 
 Onovwaka said the transition would be carried out in line with extant regulations.
 
 (NAN)