BEDC alleges ₦300m revenue loss over illegal electricity connections in Ondo

The Benin Electricity Distribution Company (BEDC) has alleged that unauthorised electricity connections in Ondo state have cost it more than ₦300 million in revenue, warning that the development threatens the stability of the power sector.

The company said its technical audit team discovered two illegal high-capacity transformer connections involving JHX Plywood Company Nigeria Limited and Dele Wood Nigeria Limited along the Omotosho Corridor.

According to BEDC in a statement issued on Saturday by its Head of Branding and Corporate Communications, Evelyn Gbiwen, the connections were discovered on January 14, 2026, during a routine inspection of the 33kV line linking the Omotosho Power Plant to Rubber Estate.

The statement alleged that the facilities were connected directly to the network of BEDC Electricity Ondo Limited (BEOL), its licensed subsidiary responsible for distribution operations in the State, without the required technical inspection and approval.

“The unauthorised connections had resulted in substantial financial losses because electricity consumed through the installations was being allocated and billed to the company without corresponding revenue from the consumers,” the statement added.

It further alleged that its technical personnel were physically obstructed by armed security operatives stationed at the premises of the affected companies when they attempted to isolate and disconnect the installations.

The company said it was subsequently informed, during a meeting with security authorities in Akure on January 22, 2026, that the Ondo State Electricity Regulatory Commission (OSERC) had allegedly authorised the Ondo State Power Company (OSPC), through its partner, Prime GTL, to carry out the connections.

However, BEDC maintained that the arrangement violated established electricity market rules, insisting that BEOL remained the licensed market participant responsible for receiving electricity from the national grid and settling upstream costs through its approved distribution infrastructure within its franchise area.

The company expressed concern that the arrangement placed an unfair financial burden on its operations, as it continued to bear the cost of electricity consumed through the disputed connections.

BEDC said it had made several attempts to resolve the dispute through administrative and regulatory channels without success.

It disclosed that, at a meeting with OSERC on August 19, 2026, it presented records showing that the unauthorised connections had generated losses exceeding ₦200 million as of June.

According to the company, OSERC had undertaken to seek clarification from the Nigerian Independent System Operator (NISO), but no substantive resolution had been communicated to it.

Following the unsuccessful engagements, BEDC said it approached the High Court for intervention to protect its distribution infrastructure and operational rights in Ondo State.

The company stated that the court granted an interim injunction affirming its exclusive operational rights within its franchise area and restraining further interference by OSERC, OSPC and their partners pending the determination of the substantive suit.

BEDC, however, alleged that the disputed connections and electricity consumption had continued despite the court order, with the resulting financial losses rising beyond ₦300 million.

It described the situation as a threat to the financial sustainability of the Nigerian Electricity Supply Industry (NESI), particularly amid the liquidity challenges confronting the sector.

The company also expressed concern over the position reportedly maintained by the Ondo State Commissioner for Energy and Mineral Resources, through the state regulatory commission, that the affected consumers belonged to OSPC but that BEDC should continue to bear the cost of their electricity consumption.

BEDC noted, “Allowing third parties to access licensed electricity distribution infrastructure without the necessary authorisation and clear payment arrangements could undermine regulatory discipline, discourage investment and weaken confidence in the electricity market.”