BEDC Rejects Ondo Government’s Move to Take Over Electricity Distribution

The Benin Electricity Distribution Company (BEDC) has strongly opposed the Ondo State Government’s recent announcement to assume control over electricity distribution within the state, labeling the move as illegal and disruptive to existing agreements.

In a statement issued on Friday, BEDC’s Chief Revenue Cycle Manager, Mr. Collins Igwe, emphasized that the company remains the legally licensed operator for electricity distribution in Ondo State. He warned that any unilateral takeover would violate the joint communiqué previously signed between BEDC/BEOL and the Ondo State Government, which aimed to collaboratively address power supply challenges in the state.

“Any such move undermines the spirit of collaboration and mutual understanding agreed upon to resolve electricity issues in the state,” Igwe stated. He further noted that the challenges affecting electricity supply in Ondo were national in scope and that BEDC, through BEOL, was committed to long-term solutions.

The controversy arises after the Ondo State Government, through its Special Adviser on Power, Engr. Johnson Alabi, declared its intention to take over electricity distribution from BEDC, citing the company’s failure to provide adequate power supply to residents. Alabi announced plans to invest $5 million to improve the state’s power distribution infrastructure.

In response, BEDC’s Acting Managing Director, Jonathan Lawal, represented by Chief Commercial Officer Akinyele Ogunleye, criticized the state’s use of the term “takeover,” suggesting that a franchising arrangement would be more appropriate. He acknowledged the company’s limitations in power supply, attributing them to broader national issues in electricity generation.

The Nigerian Electricity Regulatory Commission (NERC) has recently transferred regulatory oversight of the electricity market in Ondo State to the state’s own regulatory bureau, OSERB, in compliance with the Electricity Act 2023. This move allows the state to regulate its electricity market but does not authorize it to assume control over existing distribution operations without due process.

BEDC has urged all parties to respect existing legal frameworks and warned against any unauthorized interference with its operations, emphasizing its commitment to improving electricity services in Ondo State through lawful and collaborative means.