Cold Room Operators Protest 300% Electricity Tariff Increase in Benin City

Cold room business owners in parts of Benin City have raised strong concerns over a sudden and steep increase in electricity charges imposed on them by the Benin Electricity Distribution Company (BEDC). The operators, who fall under the umbrella of the Cold Room/Landlord Operators of Upper Lawsni Feeder, staged a protest following what they described as an unbearable 300 per cent hike in electricity tariffs.

According to the operators, the tariff spike came after BEDC reclassified their electricity supply from Band B to Band A, a move they insist was carried out without prior consultation or consent. They argue that the new billing structure has drastically increased their operating costs and placed their businesses under severe financial strain.

Petition Describes Tariff Hike as Shocking and Unsustainable

In response to the development, the operators submitted a formal petition through their legal representative, Mr. Olayiwola Afolabi, SAN. The petition was addressed to Edo State Governor, Monday Okpebholo, the Speaker of the Edo State House of Assembly, and the management of BEDC Electricity Plc.

The document described the tariff increase as unexpected, alarming, and economically damaging, especially given Nigeria’s current economic challenges. It noted that the cost of electricity per kilowatt-hour reportedly jumped from ₦68 to ₦209.50, a rise of over 300 per cent.

The petition emphasized that such a drastic increase is financially unsustainable for cold room operators who rely heavily on constant electricity to preserve perishable goods. It warned that the new tariff regime could force many operators to shut down their businesses or accumulate debt just to remain operational.

Electricity Costs Triple, Business Sustainability Threatened

Further explaining the impact, the operators stated that electricity units previously purchased for ₦50,000, which normally lasted for up to 10 days, now barely sustain operations for three days under the new tariff structure.

They stressed that the increase has negatively affected not only their businesses but also their customers, employees, families, and the wider Edo State economy. According to them, the situation has moved beyond progressive reform and has instead created hardship across multiple levels of society.

Call for Task Force and Tariff Review

The cold room operators appealed to the relevant government authorities to urgently intervene. They called for the establishment of a task force to review the electricity tariff system and investigate what they described as an arbitrary reclassification of their power supply band.

They maintained that a transparent and fair review process is necessary to protect small and medium-scale businesses that depend on stable electricity to survive.

Operators Say Consent Was Not Sought

Speaking on behalf of the affected operators, Mrs. Gloria Ahanmise and Mrs. Ehizogie Aiyevbomwan stated that they have operated their cold room businesses in the area for many years without similar issues. They insisted that they should have been consulted before any decision was made to move them into a higher tariff band.

According to them, the lack of engagement and explanation from BEDC has further worsened the situation, leaving operators confused and financially overwhelmed.

BEDC Responds: Consumers Cannot Choose Power Band

Reacting to the protest, Mrs. Evelyn Gbewen, the Public Relations Officer of BEDC Electricity Plc, explained that electricity consumers do not have the authority to select their power supply band.

She clarified that bandwidth classification is determined by the level of infrastructure and electricity supply available in a particular area, rather than by individual preference. According to BEDC, areas with improved and more consistent power supply are automatically placed in higher tariff bands.