THE NEED TO ADDRESS THE DEPLORABLE POWER SUPPLY SITUATION IN DELTA STATE BY BEDC GROSS UNDER-PERFORMANCE

By Zik Gbemre

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 and environs being provided by the Benin Electricity Distribution Company (BEDC), we consider it expedient to “cry out” and draw the attention of relevant Government authorities and those in the Power sector, especially now that we have a former Lagos State Governor, Mr. Babatunde Raji Fashola as Nigeria’s new Minister of Power, Works and Housing, 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 (DISCOS); 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 relevant Government authorities to address issues.

There is hardly power supply in most parts of Warri and environs as we write this. The total number of hours many receive power supply in a day is not more than two hours. In fact, most days we do not even see electricity supply at all. It is like living in a blackout; specifically in areas like Okumagba Layout, Ugboroke Layout, Water Resources, Ajamogha, Ugborikoko, Essi Layout, Agbarho, Iyara, Edjeba, Alegbo, Uti area, Jakpa, Bendel Estate, Effurun, Ovwian, Ekpan, Ubeji, Otor-Udu, Agbarho, Iwhrekan, Orhuwhorum, Osubi, Otu-Jeremi, 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 residents 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 hours of the day. 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.

Time and space here will not allow us 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 cross of the matter is that “we have never had power supply this bad in Warri and environs.” This was not the situation when the PHCN was still around. At least then Nigerians in Warri and environs used to have considerable hours of power supply within a day when PHCN was still here.

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 was 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 city 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 (CEO). BEDC, with an area of wide geographical spread, spanning four states – Edo, Delta, Ondo and Ekiti, has 16 business districts in all.

Aside the above explained situation of poor power supply in Warri and environs, from our careful investigation of the operations and power distribution of the Benin Electricity Distribution Company (BEDC), it was discovered that:

• The Management of BEDC led by its CEO, Mrs. Funke Osibodu, has not been able to ‘purchase’ the monthly required energy from the Power Generation Companies to distribute same to its power consumers in its Benin Zone. And it is based on what they can afford to ‘purchase’ as energy; that they can distribute to consumers monthly. So the little energy BEDC can acquire monthly, has been what they distribute to its consumers on “power rationing/rotation” basis since they came on board.

• Despite the reported upgrade and increased power output from the Ughelli Power Station, BEDC has not been able to acquire the considerable amount of power supply needed by its consumers for distribution.

• All the “capable hands” of Electricity Engineers and ‘experienced’ Management Staff that were able to ‘manage the complex and complicated distribution of power’ and operations of the unbundled PHCN, have been either dropped by BEDC or are forced to leave the system due to ‘poor management of workers welfare’. And in their place, these “capable hands” have been replaced by BEDC Management with persons of their ethnic groups that are ‘not competent enough’ to handle the complex power distribution networks of the Zone.

• There appears to be ‘no proper management’ of the operations and “demands of power distribution” by the BEDC in Warri and environs. The power distribution network situation in Warri and environs is bedeviled with all manner of “old and worn-out power distribution infrastructure/facilities.” From wooden electric poles that urgently need to be replaced with concrete poles, to worn-out high and low tension wires and over-used and over-loaded Transformers, Feeder Pillars; all begging to be replaced and maintained. BEDC Transformers and Feeder Pillars are amongst the major headaches that are contributing to the epileptic and unreliable power supply situation in Warri and environs. These Transformers easily develop faults because they are often made to carry loads too heavy for their capacity. Waiting for the BEDC to replace a transformer can be a frustrating thing, and to speed up the process, sometimes BEDC consumers have to either contribute money to fix a faulty transformer, fix a faulty power distribution material/facility or buy a new one, even when this cannot guarantee them of having constant electricity supply. For the feeder pillars, most of them are over stretched, even in their old worn out state, making them not to meet their designed specifications anymore. Yet, in all of these, BEDC consumers are issued electric bills to be paid monthly, and non-payment will lead to power disconnection.

• There are hardly any power distribution materials (for maintenance and replacements), in BEDC offices and premises in Warri and environs and Delta State as a whole, like realms, concrete poles, wires, roles of high and low tension cables/wires, transformers, Feeder Pillars, fuses, vehicles for movement, communication gadgets etc. Though, there are still dedicated and committed personnel of the BEDC that can be relied upon when it comes to providing needed services and good Customer Relations when called upon. But even with such good efforts from ‘very few’ dedicated BEDC personnel, they are still greatly handicapped because of insufficient provision of “spare power distribution materials and equipment, including transportation means like Hilux pick-ups, Trucks and Self-loaders.” How can a Power Distribution Company like BEDC, claim to have gone into the business of power distribution when it does not have Trucks/Vehicles and power-distribution replacement/maintenace materials in virtually all its offices in Warri and environs? The few ‘rickety Vehicles’ they have cannot in any way be enough for its field personnel movements.

• BEDC has ‘normalized’ a four-to-six-hours of Power Rotation/Rationing in most parts of Warri and environs, especially in areas like Water Resources, Okumagba Layout, Ugboroke layout,  New Layout in Japka areas etc; where residents and business owners are made to experience few hours of power supply in a whole day and every other two days in a week.

• The only time the BEDC likes providing ‘considerable hours of power supply in Warri and environs is when they want to go round the city, usually towards the end of every month, to issue Power Bills and cut the power of BEDC Customers that owe. They often ensure that most areas have power supply towards the end of the month so that their consumers bills and target for every month will be met, after which they go back to their normal practice of not supplying power supply to residents of Warri and environs.
• Again, there are too many issues which we cannot sufficiently detail here due to space.

The Managing Director of BEDC, Mrs. Funke Osibodu, sometime in 2015 disclosed that the company inherited a whooping sum of N25.3 billion as debts, and that BEDC requires N45 billion to stabilize its operations for five years in the Zone, which comprises of Edo, Delta, Ondo and Ekiti States. However, we believe this should not be an excuse for their underperformance. Why should the BEDC have bought 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 money 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.

Even when the Central Bank of Nigeria moved to resolve the liquidity challenges in the power sector by releasing a total loan of N18.26bn to five power firms at an interest rate of ten per cent and with a repayment period of ten years, which is part of the N213bn Nigerian Electricity Market Stabilization Facility, we seriously doubt if the BEDC having eventually gotten part of the loan we believe. This is hinged on the ‘operational defects, biased/incompetent management staff and lack of capacity/capability evident in BEDC as a privately-owned power distribution company.  

It is against this backdrop and the above enumerated prevailing circumstances of the poor power supply in Warri and environs that we, the above named Forum, unanimously agreed and urge the following actions:

• The relevant government authorities and the Presidency should revoke the sales of PHCN Benin Power Distribution zone and re-take over it from BEDC for underperforming. The BEDC should be refunded their franchise and investment made in the said zone.

• The rotational ‘power supply rationing’ being practiced in 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.

• 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 spend daily in fueling and maintaining their generators (for those that can afford it), cannot be 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. Our investigations also revealed that the BEDC Districts Offices which includes: the Main Office at Warri-Sapele Road and Robert Road in Warri, Udu/Jeremi Business District Office, Effurun 1 and Effurun 2 Business District Offices, are said to often times use generators to power electricity in their offices. All of this shows that they practically do not have what it takes to sustain and manage the demands of power distribution in the zone.

We therefore urge that the issues raised here should be given the adequate attention it deserves. Thanks.

Zik Gbemre, JP.

National Coordinator