The Benin Electricity Distribution Company (BEDC) Plc has voiced serious concerns regarding the steep decline in power generation from Nigeria’s national grid, a development the company says is significantly hampering its operations, impacting customer satisfaction, and eroding revenue collection.
Mr. Ogunleye Akinleye, Chief Commercial Officer of BEDC, addressing journalists in Benin on Friday, highlighted the severity of the situation. He stated that the drop in electricity generation to approximately 3,940 megawatts has drastically reduced power supply across the nation, particularly affecting BEDC’s franchise areas.
“The drop in national grid generation to about 3,940 megawatts has significantly affected electricity distribution across the country, including our franchise areas,” Akinleye explained.
He emphasized the direct correlation between inadequate power supply and customer willingness to pay, particularly among post-paid users.
“When customers do not receive adequate power supply, their payment appetite declines, and this has a direct negative impact on post-paid collections,” he stated.
Akinleye further noted that the reduced energy supply has also negatively impacted prepaid customers. “Similarly, the low energy supply has reduced the vending of prepaid customers, resulting in poor revenue collection by the company,” he added.
The BEDC official warned that the dwindling revenue stream is impairing the company’s ability to meet its financial obligations within the Nigerian electricity supply chain.
“The poor revenue collection has affected our ability to meet our market obligations, which ultimately impacts our access to full operational expenditure,” he lamented.
Akinleye expressed his disappointment with the persistent decline in power generation, characterizing it as a major challenge confronting the power sector. He appealed to customers in Edo, Delta, Ondo, and Ekiti states – BEDC’s franchise areas – to remain patient and continue supporting the company.
He concluded by assuring customers that the federal government and other stakeholders in the electricity sector are actively working to address the underlying issues affecting power generation and distribution across the country.