Addressing the Electricity Burden on Businesses in Benin

The report argues that traditional electricity burden assessments undercount the financial strain on businesses by ignoring 'extra costs'—expenses for generators, voltage stabilizers, and alternative energy used to mitigate power outages and fluctuations. Using 2015 survey data from 1,002 grid-connected firms in Benin, the study introduces three metrics (EB1, EB2, EB3) to distinguish between burdens caused by bills alone and those driven by defensive costs. Findings show that extra costs account for 44% of total electricity expenditure and that 60% of businesses face an electricity burden when these costs are included, compared to 55% when only bills are considered. The authors recommend that policymakers in Benin and Sub-Saharan Africa incorporate these defensive costs into policy design, prioritize grid reliability infrastructure, and provide targeted financial support for vulnerable groups, particularly informal sector businesses.

• Extra costs associated with defensive measures against unreliable power represent 44% of the total electricity expenditure for firms connected to the grid in Benin.
• Investment in defensive measures is dominated by power generators, which account for 74% of the investment budget for extra costs, while voltage stabilizers account for 26%.
• Accounting for extra costs increases the identified proportion of electricity-burdened firms from 55% (based on bills alone) to 60%.
• Certain business profiles are more susceptible to electricity burden, including those in the informal sector, enterprises with higher-value equipment, and businesses managed by owners or managers who are older or uneducated.

APA

Clean Air Task Force (n.d.). Addressing the Electricity Burden on Businesses in Benin. https://cdn.catf.us/wp-content/uploads/2025/08/11161244/addressing-electricity-burden-business-benin-executive-summary-english.pdf

Chicago

Clean Air Task Force. Addressing the Electricity Burden on Businesses in Benin. n.d. https://cdn.catf.us/wp-content/uploads/2025/08/11161244/addressing-electricity-burden-business-benin-executive-summary-english.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=Addressing the Electricity Burden on Businesses in Benin |url=https://cdn.catf.us/wp-content/uploads/2025/08/11161244/addressing-electricity-burden-business-benin-executive-summary-english.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforcendaddressing, author = {{Clean Air Task Force}}, title = {{Addressing the Electricity Burden on Businesses in Benin}}, institution = {Clean Air Task Force}, url = {https://cdn.catf.us/wp-content/uploads/2025/08/11161244/addressing-electricity-burden-business-benin-executive-summary-english.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }