BENIN ELECTRICITY DISTRIBUTION PLC
5, Akpakpava Road, Benin City, Edo State, Nigeria.
Benin Electricity Distribution Plc, or Benin Disco, serves a primarily industrial customer base in Delta, Edo, Ondo and Ekiti States, Nigeria’s industrial Mid-West, a region dominated by oil and energy-related companies. Benin Disco owns and maintains electrical installations and the distribution network within the zone, manages meter installations and servicing, billing, coordinates consumer credit services, and collects revenue.
Benin Disco is one of 11 such distribution companies comprising a national distribution grid. The Transmission grid, in turn, is managed by a separate company, the Transmission Company of Nigeria (TCN) Plc.
Benin Distribution Company Plc was established as a public limited liability company on November 7th, 2005. Benin Disco is managed by a Chief Executive Officer (CEO), who also serves as the Chief Accounting Officer and reports directly to the CEO, Power Holding Company of Nigeria (PHCN) Plc, Benin Disco’s parent company. By July 1, 2006, Benin Disco became a standalone company as a next step toward privatization.
In 1999, the FGN began an aggressive restructuring of the power sector with several aims, including introduction of efficient, private sector standards and management principles, and methodology, leading to reliable power.
In 2001, the FGN approved a National Electric Power Policy (NEPP), followed in 2005 by the Electric Power Sector Reform (EPSR) Act. EPSR Act provides the legal authority for the unbundling of Nigeria’s power utility as well as the establishment of an independent regulatory commission, the Nigerian Electricity Regulatory Commission (NERC), to guarantee open access and ensure efficiency throughout the industry. EPSRA also provides for a consumer assistance fund, development of a competitive market, and establishment of a Rural Electrification Agency and Fund (REA & REF) and the Nigeria Electricity Liability Management Company (NELMCO).
The core investor sale option was adopted by the Bureau of Public Enterprise in the privatization of the eleven Distribution companies in Nigeria which include Benin Electricity Distribution Company. In this model, the Federal Government retained 40% while the Successor Company retained 60% in the franchise.
Credit: The Bureau of Public Enterprise.