Delta, 3 states seek takeover Of BEDC

By Nosa Àkenzua

The state governments of Edo, Delta, Ondo and Ekiti collectively referred to as BEDC franchise states, have taken steps to take over the Benin Electricity Distribution Company ( BEDC) by March 31, 2024.

While Asaba communities described BEDC as a total failure, its residents regretted the poor services of the company in the last few weeks, adding that the disappointing process of the BEDC as company for power supply,had remained difficult times for the consumers particularly in the perilous times of strange heat rashes.

Of the four states, Delta has the highest shareholder in BEDC at 14 percent in what is called ‘ residual equity but it was gathered that the four states have notified the Nigerian Electricity Regulatory Commission NERC of their intent to possibly take over the regulatory control of BEDC by the end of March 2024 .

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The states have therefore urged NERC to begin the process of unbundling BEDC along state boundaries, which implies a desire for more localized control over electricity distribution that aligns with state borders and have also requested formal notification before any further regulatory actions are taken, such as the appointment of new directors and a management team.

They however, said that it is a response to the ” Operational Challenges and failure in service delivery within their respective states..

In a unified correspondence addressed to the Chairman of NEREC Engr Sanusi Garba Sanusi, they called it an Initiative to address longstanding discrepancies stemming from the privatization process of 2013 .

Meanwhile, sources with knowledge of the move added that the direct shareholding of Edo State in BEDC is currently 8.4percent which Ondo and Ekiti states own 6: percent respectively.

The Federal Government owns 5.8 percent, giving the states and Federal Government a combined stake of 40 percent in the electricity company

In their expression of intent written as a formal notification to NERC, the state governments asked for a fair share of their residual equity and expressed satisfaction with the operational deficiencies and service delivery failures of BEDC , stating that the provision of reliable electricity is a core value and priority, essential for the welfare, development of their populations.

” After a thorough evaluation of the Operational deficiencies and service delivery failures to our states, the BEDC State Governments intend to exercise our shareholders rights in BEDC to ensure that the efficient provision of electricity services to our our citizens.

“The provision of reliable electricity to enhance the welfare and development of our people is core priority of our governments, as such we cannot afford to overlook the Critical importance of ensuring that electricity distribution services provided by BEDC meet the needs of the people henceforth”, the expression of interest read in part.

On active board and management participation, they expressed their intention to exercise their rights as stakeholders to address these concerns, adding that the rights include:” an active role in decision making at both the board and management levels to improve operations, and service delivery as well as to extend electricity access to un- served and under served communities.

“In the exercise of their rights, the BEDC state governments intend to actively participate in the decision making processes of BEDC both at the board and management level, with the goal of strengthening its operations to enhance service delivery, Improve operational efficiency, increase electricity access to un- served and under served communities and ultimately, transform the electricity sector within our States”

Speaking to journalists in Asaba, Delta State, Secretary to the State Government( SSG). Dr Kingsley Emu said that the process would enhance total development in all shares adding that the abysmal shoddy performances Of BEDC informed the state governments’ decision to ensure that power supply boost their business activities.

Only recently, residents of Asaba in peaceful protest , described BEDC as Company without direction and Called on Nigerians to continue to speak their minds in regard to the failure of the Company..

Leader of the protesters, Mr Mike Asabe said that the protest became imperative when in the past four months no light provided for the people of Asaba by BEDC upon arbitrary bills for payment and therefore appealed to the state government to come to their aid .