SPECIAL REPORT: Benin DisCo Petitioned Over N1Bn ‘Ghost Debt’, Months-Long Blackout
By Sunday Etuka
Three rural communities in Owan East Local Government Area of Edo State have accused the Benin Electricity Distribution Company (BEDC) of billing fraud, abuse of market power, and unlawful disconnection after the electricity distributor plunged them into darkness for nearly five months over a disputed debt that residents say was calculated without a single meter reading.
The complaint, filed recently by the Consumer Advocacy and Protection Association of Nigeria (CAPA) and signed by its National President, Chief Princewill Okerie, on behalf of residents of Warrake, Ihievbe and Ivbiaro communities, was addressed to BEDC’s Managing Director and copied to the Nigerian Electricity Regulatory Commission (NERC), the Edo State Electricity Regulatory Commission, the Federal Competition and Consumer Protection Commission (FCCPC), and the Edo State Commissioner of Police.
At the heart of the dispute is a staggering claim: BEDC is demanding payment of N1.056 billion, a figure the consumer group says lacks any verifiable basis.
Under NERC’s approved billing framework, electricity distributed to a community should be tracked by a meter installed on the transformer serving that area. The meter reading then forms the basis for calculating what residents owe. But the complaint alleges that no such metering exists for these communities.
“We request proof that there were meters on the transformers serving the communities and the meter readings used to arrive at the debt of N781 million and N1.056 billion as at February 2026,” the complaint states.
Adding to the confusion, the communities say they have made documented payments in recent years, including N3 million paid by the Local Government Chairman, N5,000 paid individually by each customer and a combined N5.2 million paid in 2024 and 2025, none of which appears to have been deducted from the disputed balance.
Consumer advocates say BEDC has compounded the problem by continuing a practice that regulators banned nearly a decade ago: bulk billing, in which an entire community is treated as a single account rather than individual customers receiving separate bills.
NERC abolished bulk billing in 2016, and Section 29(6) of the Customer Protection Regulations (CPR 2023) is explicit that “the only recognised customer of a Distribution Company for the purpose of billing and bill settlement shall be the registered owner of the property.”
The complaint questions the basic logic of BEDC’s enforcement action: “which particular customer owes the purported claim of N781 million and N1.056 billion that made BEDC stop the supply of electricity to the communities?”
A separate grievance concerns infrastructure investment. The communities say they spent approximately N13,88 million in 2023 to provide electricity infrastructure-poles, wires and associated equipment, that BEDC then energised and used to generate revenue, without ever signing the mandatory Third-Party Investment Agreement required by NERC.
Under that regulatory framework, when customers fund network expansion on behalf of the distribution company, the company is required to refund the investment. The consumer group alleges BEDC ignored that obligation entirely, then, in a further twist, began conditioning the restoration of electricity supply on the communities repairing or replacing aging poles at their own expense.
This petition was reportedly hardened at a May 13, 2026, meeting at BEDC’s Auchi Regional Office attended by officials identified as Mr. Kelechi Rufus, Mr. Olatunji Mumeen (Business Manager) and Engr. Yusuf (BEDC Head of Technical Operations). According to the complaint, the officials told community representatives that electricity would not be restored unless residents paid 70% of the N1.056 billion debt or deposited N10,000 each into their individual meter accounts.
Consumer advocates argued that BEDC has also breached its obligations under the Customer Service Standards embedded in the CPR 2023. Section 54 of those regulations requires that once a fault is reported during working hours, a BEDC official must visit within 24 hours, and any fault in the company’s equipment must be rectified within 24 to 48 hours.
“Which regulation is BEDC relying on in making this demand or making the repair of the infrastructure a condition for restoring electricity to consumers?” the complaint asks.
The consumer group is calling on BEDC to: replace the fallen poles and restore electricity immediately, Issue individual bills in accordance with NERC’s approved estimated billing cap, abandoning the discredited bulk billing approach, Provide transformer meter readings as evidence of the energy actually supplied during the disputed period, for use in a transparent reconciliation process, Sign and implement a Third Party Investment Agreement if the communities agree to fund any further infrastructure work, and hold a formal meeting with community representatives to reconcile accounts.
The group warned that BEDC’s conduct amounts to abuse of market power and may constitute offences under Sections 217 and 218 of the Electricity Act 2023, which relates to false declarations and corporate offences.
BEDC has not responded publicly to the allegations at the time of filing this report.
