The Federal Government has taken decisive steps towards the takeover of the Benin Electricity Distribution Company (BEDC) amid mounting frustrations over persistent poor power supply in the region. The move comes as a response to years of dissatisfaction expressed by consumers and stakeholders regarding the abysmal performance of the utility provider.
BEDC, which covers electricity distribution in Delta, Edo, Ekiti, and Ondo states, has long been criticized for its inability to provide reliable power to its customers. Citizens have endured prolonged outages, erratic supply, and substandard service delivery, prompting widespread calls for intervention.
In a bid to address the situation, the Federal Government has initiated plans to assume control of BEDC operations. This move is aimed at revamping the management structure and implementing measures to enhance service delivery, reliability, and accountability within the company.
The letter reads – Notification of Interest to Exercise Shareholder Rights in Benin Electricity Distribution Company – to NERC and sighted by Vanguard, the state governments, said: “We write to formally inform NERC of the intent of the governments of Delta, Edo, Ekiti and Ondo states (the BEDC State Governments) regarding our collective residual equity in the Benin Electricity Distribution Company, BEDC.
After a thorough evaluation of the operational deficiencies and services delivery failures to our states, the BEDC state governments intend to exercise our shareholder rights in BEDC, to ensure the efficient provision of electricity services to our citizens.
The provision of reliable electricity to enhance the welfare and development of our people is a 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 and expectations of our populace, henceforth.
“In exercising our shareholder rights, the BEDC state governments intend to actively be involved in the decision-making processes of BEDC, both at the board and management levels of the company, to strengthen service operations to enhance service delivery, improve operational efficiency, increase electricity access to unserved and underserved communities and ultimately, transform the electricity sector within our states.
“Please, note that our demand is not capricious and merely wishes to correct a historical lapse. We wish to emphasize that at no point did the BEDC state governments give any Power of Attorney (PoA) to either the Federal Ministry of Finance Incorporated or the Bureau of Public Enterprises, BPE, with respect to our shareholding in PHCN successor, Benin Electricity Distribution Company, or the post-privatized entity.
”The decision to intervene underscores the government’s commitment to addressing the systemic issues plaguing the power sector and improving the quality of life for citizens. It also reflects a recognition of the critical role that electricity plays in driving economic development and social well-being.
”As part of the takeover process, the current management of BEDC is set to be ousted, with new leadership expected to be appointed to oversee the transition and implement reforms. This shake-up is seen as a necessary step to break away from the status quo and instill fresh perspectives and strategies to tackle the challenges facing the utility provider.”
The move has generated mixed reactions, with some stakeholders expressing cautious optimism while others remain skeptical about the potential effectiveness of the intervention. However, there is a general consensus that decisive action is needed to address the longstanding issues hindering progress in the power sector.
In addition to the management changes, the government is expected to implement comprehensive measures to improve infrastructure, upgrade technology, enhance revenue collection, and promote transparency and accountability within BEDC.
The success of the takeover and management shake-up will ultimately hinge on the commitment of all stakeholders, including the government, regulators, utility providers, and consumers, to work together towards a common goal of achieving a more reliable and efficient electricity supply system.
As the process unfolds, stakeholders will be closely monitoring developments to assess the impact of the intervention and determine whether it leads to tangible improvements in power supply and service delivery across the BEDC coverage area.
