…to invest $5 Million

By Fatima Muraina

The Ondo State Government has declared its readiness to take over the electricity distribution network from the Benin Electricity Distribution Company (BEDC) Plc in a bid to deliver improved power supply to its citizens.

It also revealed that the sum of $5 million has been earmarked for the first phase of the project.

The Special Adviser to the Governor on Power, Engr. Johnson Alabi, disclosed this during a meeting with BEDC/BEOL officials held on Thursday in Akure, the state capital.

Alabi expressed displeasure over the performance of the electricity company, lamenting its inability to meet the expectations of the state government, particularly as it concerns power supply to residents and investors.

“Power supply has not been at its best. We have engaged the company at various fora, but the improvement has not been as swift as the state government desires,” he said.

“We discovered that the company lacks the financial capacity to meet required expectations, which has resulted in constraints. On that basis, the Ondo State Government is now prepared to take over the distribution network in the state so electricity can reach the doorsteps of all consumers,” he stated.

He added that both parties had agreed to set up a joint committee with a defined timeframe to submit a comprehensive report.

Alabi reaffirmed the commitment of the state government to providing reliable electricity, adding that funds have already been set aside for investment in the power distribution sector to meet the growing public demand.

According to him, the law empowers the state to take over and pay what is termed the “distribution use of system” charge for the existing network infrastructure.

He noted that this would enable the state to engage consultants and attract investors who could improve the distribution network significantly.

Earlier, in a report presented to stakeholders, the Coordinator of the Ondo State Electricity Bureau, Mr Stephen Bolawole, described the operations of Benin Electricity Ondo Limited as illegal, citing the company’s alleged failure to comply with agreed terms and regulatory requirements.

Bolawole referenced several provisions of electricity law and argued that the company appeared unfamiliar with the regulatory framework of the state. He maintained that a cost-reflective tariff for the state should not exceed ₦200 per unit.

Responding, the Chief Commercial Officer of BEDC, Mr Akinleye Ogunleye, said the company had taken notable steps towards improving service delivery and expressed readiness for further collaborative engagements.

While reiterating BEDC’s commitment to ensuring uninterrupted power supply in the state, he admitted that the ongoing transition had presented challenges to meeting expectations.

According to him, the company is considering a franchise arrangement, which he said would follow due process and allow investors to participate meaningfully in discussions aimed at enhancing operations.

“There are still underserved areas, but it is not out of place for investors to come in and manage the situation to improve electricity provision in those regions,” he said.

Others present at the meeting included the Head of Strategy and Corporate Coordination, Mr Afolabi Opeoluwa; the Permanent Secretary of the Ministry of Energy and Mineral Resources, Alhaji Olabode Yusuf; and the Chief Executive Officer of Enerixone Limited, Mr Adebayo Adesina.