Edo, Delta, Ondo, and Ekiti state governments expressed their intention to the Nigerian Electricity Regulatory Commission (NERC) to possibly take regulatory control of the Benin Electricity Distribution Company (BEDC) by March 31, 2024. The BEDC states in a unified correspondence to NERC claimed this initiative is a result of operational challenges and failures in service delivery by the Disco within their respective states.
In a letter addressed to Engr. Sanusi Garba, the Chairman of NERC on March 18, the BEDC states, expressed the intention of member states to meet with the commission to discuss the intention behind asserting shareholder rights.
As contained in the letter, The State Governments disclosed that they carried out a "thorough evaluation of the operational deficiencies and service 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 participate in the decision-making processes of BEDC both at the Board and Management level of the Company, to strengthen the operations of the Company 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 Government give any Power of Attorney (POA) to either the Federal Ministry of Finance Incorporated (MOFI) or the Bureau of Public Enterprises (BPE) with respect to our shareholding in the PHCN Successor Benin Electricity Distribution Company, or the post-privatized entity.
“It has come to our notice that the Commission intends to exercise a regulatory takeover of BEDC by March 31st, 2024. The Commission is kindly requested to formally notify the BEDC State Governments before taking any regulatory action to appoint new Directors and a Management Team for the Company. We also urge the Commission to immediately commence the process of unbundling BEDC into its operational areas along State boundaries."
