By Zik Gbemre
With recent reports that with the near-collapse of power supply in many parts of the country, which is made worse by the recent drop by 1,598 megawatts, it is said the House of Representatives may review the privatization policy of the Federal Government and thereafter revoke agreements that have paved the way for the sale of Power Holding Company of Nigeria (PHCN); we consider it necessary to also add that the House of Representatives should equally revoke the operating license of the Benin Electricity Distribution Company (BEDC), as one of the Distribution Companies (DISCOS) in the country that are grossly underperforming.
Dropping the hint recently, member of the House of Representatives Committee on Privatization and Commercialization, Sopuluchukwu Ezeonwuka who represents Orumba North/ South Federal Constituency of Anambra State said that revocation was likely if power distribution does not improve in the country.
Having endured countless months of untold hardship and anguish, which still persists till today, as a result of the poor, pathetic, deplorable and unexplained power supply situation in the oil city of Warri, Ekpan, Effurun, Ughelli and environs being provided by the BEDC, we consider it expedient to use this window announced by NERC to “cry out” and draw the attention of relevant NERC and Government authorities and those in the Power sector to promptly come to the aid of Nigerians living and doing business in Warri and environs.
It is really sad to note that even with the concluded privatization of the Power Sector, it appears some power Distribution Companies; specifically, the Benin Electricity Distribution Company (BEDC) have shown not to have the capacity, capability and wherewithal to handle and manage the Power Distribution networks of its supposed zone, which includes Warri and environs. As such, BEDC has been grossly underperforming since it bought and took over the said Power assets previously managed by Power Holding Company of Nigeria (PHCN); hence, the need for the quick intervention of the lawmakers and the relevant Government authorities to address issues.
There is hardly power supply in most parts of Warri and environs as we write this, and the situation has become terribly worse. The total number of hours many receive power supply in a day (sometimes in a whole week), is not more than two hours. In fact, most days we do not even see electricity supply at all. Some areas in Warri and environs, like Water Resources, where power supply is being ‘rationed’ (two days on and one day off), are experiencing even far worst situations of poor power supply by BEDC. The whole thing is like living in a blackout; specifically, in areas like Okumagba Layout, Ugboroke Layout, Water Resources, Ugborikoko, Essi Layout, Iyara, Edjeba, Alegbor, Uti area, Jakpa, Bendel Estate, Effurun, Ovwian, Ekpan, Otor-Udu, Agbarho, Iwhrekan, Osubi, Otu-Jeremi, Ughelli areas, etc. Even when the electricity does come in most of these areas, often times it is either the voltage supplied is very low and cannot be used by reside nts and business owners to do anything, or the power supplied does not last long at all; sometimes between one hour to four hours of power supply within 24 to 48 hours. Not to mention some areas that have not had power supply for several weeks and months due to one power distribution problem or the other.
For instance, it practically took the BEDC about Nine (9) Months to replace a bad Transformer recently at Ugboroke Layout, Effurun-Warri, Delta State, and this was after the intervention of the Hon. Minister of Power, Works and Housing. It is cases like this that have propelled us to urge the Federal Government to take a radical approach in this direction, by promptly revoking BEDC operating license and take over the distribution of power to Nigerians.
Time and space will not allow us here, to carefully detail the poor and pathetic power supply situations evident in all the different areas of Warri and environs as stated above. But the crux of the matter is that, we have never had power supply this bad in Warri and environs. This was not the situation when NEPA and later, the PHCN were still around. At least then Nigerians in Warri and environs used to have considerable hours of power supply within a day when NEPA and later PHCN was still here.
This was affirmed differently by Hon. Ezeonwuka who said: “If you take a critical look at all the enterprises that have been privatized by the Federal Government, many of them are not living up to expectations. The case of Power Holding Company of Nigeria (PHCN) is the worst. It was better when it was National Electric Power Authority (NEPA). By the time it became PHCN it was now worse. I assure you that as lawmakers, we are taking a critical look at the various agreements that have made it possible for these institutions to be privatized, and by the time we are done, comparing also their current viabilities with what they were before, we may be compelled to revoke their contracts.”
Agreed that the nation’s power output is down, according to the Minister of Power, Works and Housing, Babatunde Fashola, because out of over 26 power plants, 23 are fired by gas, adding that with the continuous destruction of pipelines, the country now struggles with between 2000 and 2500megawatts when it ought to be producing about 5000-6000 megawatts, however, the issue is since the coming in of these DISCOS like BEDC, the power supply situation in most parts of the country is nothing to write home about. One then begins to ask what are DISCOS doing with what is given them in terms of generated power output? How have they been able to ‘adequately manage’ the little Mega Watts of electricity generated in trying to satisfy Nigerian consumers? All we have seen the DISCOS good at is to introduce high electricity tariffs and sharp practices that only makes life more miserable for Nigerian electricity consumers.
Nigerians in Warri and environs in Delta State thought that with the Privatization of the Power Sector and BEDC coming on board, electricity supply will change for the better. Our high expectations were born out of the fact that Privatization, which is a good thing, has a way of injecting new innovations to any sector and transform it for the better. We saw that with the Telecommunication and IT sector, and today Nigerians are better off. Though, the Power sector is more capital-intensive and more demanding, one would have thought that the private companies like the BEDC that took over the power distribution in Delta, Edo, Ondo and Ekiti States, would have the wherewithal and capacity to manage what they have taken over. Unfortunately, that has not been the case with the Power Sector. The poor power supply in Warri and environs for instance, has gone from bad to worse. It is like we have taken two steps backward in improving power supply in the oil cit y of Warri and environs since the takeover of the power distribution sector by private company-BEDC.
Vigeo Power Limited is the owner of Benin Electricity Distribution Company, which has Mrs. Funke Osibodu, a former Managing Director of Union bank Plc, as the Chief Executive Officer. BEDC, with an area of wide geographical spread, spanning four states – Edo, Delta, Ondo and Ekiti, has 16 business districts in all.
In Delta State, for instance, it is sad that for quite some time now and still presently, the BEDC has ‘normalized’ Power Rotation/Rationing in most parts of Warri and environs, especially in areas like Water Resources, New Layout in Japka, Iyara areas etc; where residents and business owners are made to experience just few hours of power supply (which is hardly supplied), in a whole day and every other two days in a whole week. The only time the BEDC like providing ‘considerable hours of power supply in Warri and environs is when they want to go round the city to issue Power Bills and cut the power of BEDC Customers that are supposedly owing. Sometimes they even go about cutting power supply lines of customers (without shame) when there is no electricity supply. This is no way a responsible corporate company should be functioning.
Sometimes we are forced to ask; Why should the BEDC buy over power distribution interests from the unbundled PHCN when it knows it does not have the wherewithal and capacity to adequately manage them? What businessman buys a house it does not have wherewithal and capacity to run and maintain? What is the rationale behind BEDC’s move to acquire power distribution assets from the Government that it cannot handle? If we look at it carefully, we would realize that BEDC is not handling the power distribution zone in Benin with all sincerity of purpose; neither does it show that they are honest with their operations.
It is against this backdrop and the above enumerated prevailing circumstances of the poor power supply in Warri and environs that we urge Nigerian Lawmakers, relevant government authorities and the Presidency to revoke the sales of PHCN Benin Power Distribution zone and re-take it over from BEDC for underperforming. The BEDC operating license should be revoked and they should be refunded their franchise and whatever investment made in the said zone.
Also, the rotational ‘power supply rationing’ being practiced in the most areas of Warri and environs should be stopped; with the provision of additional Transformers and power distribution materials to ‘support the existing ones’ in the areas concerned, or the disconnection of other areas that were ‘unnecessarily’ connected to the existing Transformers of some areas, so as to allow these areas concerned to solely enjoy the Transformers meant to feed only their areas in the first place. NERC should please come to our aid and help address all the above stated electricity supply problems evident in all the areas of the oil city of Warri and environs, which have continued to make life and modern-day-living a very distasteful experience for residents and business owners in Delta State, should be promptly and holistically addressed by relevant authorities of the Government and those in the Power/Energy sectors.
The amount of money people spends daily in fueling and maintaining their generators (for those that can afford it), cannot been comprehended. Nobody will be happy to pay electricity bills to BEDC in the current situation in Warri and environs, especially with the increase in tariff for power supply. There is hardly power supply in Warri and environs and it is the common poor masses that are suffering and bearing the brunt. The situation is getting out of control and daily becoming a nightmare. The privatization of the Benin Power Distribution networks in the hands of BEDC is a complete failure because since their takeover, the electricity supply situation in Warri and environs has gone from bad to worse.
We therefore urge that the issues raised here should be given the adequate attention it deserves.
Zik Gbemre, JP.
National Coordinator
Niger Delta Peace Coalition (NDPC)
No.28, Opi Street, Ugboroke Layout, Effurun-Warri,
P.O. Box 2254, Warri, Delta State, Nigeria.
Tel: +2348026428271
+2348052106013
Website: www.ndpc-zik.org.
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