BEDC raises concerns over alleged fraudulent connections promoted by Ondo power company

•Cites revenue losses exceeding N300m

THE BEDC Electricity Plc. (BEDC) has raised the alarm over rampant instances of energy theft and unauthorised grid tampering within its electricity distribution network in Ondo State.

The company revealed that its technical audit teams recently discovered two high-capacity unauthorised transformer connections along the Omotosho Corridor.

The Benin Electricity Distribution Company (BEDC) said these illicit activities are severely undermining ongoing operations to provide stable electricity to legitimate customers in the state, causing the company to suffer estimated revenue losses in excess of N300 million.

The company expressed concern over the market anomaly, warning that such activities are capable of completely destabilising regulatory discipline, eroding investor confidence, and threatening the financial sustainability of the Nigerian Electricity Supply Industry (NESI).

According to BEDC, its licenced subsidiary responsible for distribution operations in Ondo State, BEDC Electricity Ondo Limited (BEOL), discovered the unauthorised network connections on January 14, 2026, during a routine technical patrol of the 33kV line running from the Omotosho Power Plant to Rubber Estate.

It said its technical audit team discovered that two facilities belonging to JHX Plywood Company Nigeria Limited and Dele Wood Nigeria Limited, both located along the Omotosho Corridor, had connected directly to BEOL’s high-voltage network without formal technical inspection and approval to connect.

BEDC management further disclosed that on January 14, 2026, its technical audit team were reportedly accosted and physically obstructed by armed security operatives stationed within the premises of the affected companies during a lawful attempt to isolate and disconnect the hazardous, unmetered installations.

“Furthermore, during a follow-up briefing with security authorities in Akure on January 22,  BEDC was informed that the Ondo State Electricity Regulatory Commission (OSERC) had allegedly authorised the Ondo State Power Company (OSPC), acting through its partner, Prime GTL, to execute the connections.”

BEDC maintained that these connections were carried out in complete violation of market rules, as BEOL remains the only contractually recognised and licensed market participant responsible for receiving energy from the National Grid and settling upstream costs through its approved distribution infrastructure within the franchise area (including the asset connected to by these unauthorized consumers).

The company lamented that energy losses resulting from these unauthorised taps place an unjustifiable financial strain on its operations, as the unmetered electricity continues to be allocated and billed directly to BEDC without corresponding revenue collection.

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Following several unsuccessful administrative engagements, BEDC claimed it  re-presented the matter to OSERC during a meeting on August 19, presenting data showing that the unauthorised connections had already accumulated losses exceeding N200 million as of June 2026.

Although OSERC reportedly undertook to seek further clarifications from the Nigerian Independent System Operator (NISO), no feedback or meaningful regulatory resolution has been communicated to date.

Having exhausted all available administrative and regulatory channels, BEDC approached high court for judicial intervention to protect its network infrastructure.

The court subsequently granted an interim injunction affirming BEDC’s exclusive operational rights over its Ondo State franchise and explicitly restraining further interfering actions by OSERC, OSPC, and their partners pending the determination of the substantive suit.

BEDC expressed deep shock that despite the subsistence of this valid court order, the unauthorised connections and illegal energy consumption have reportedly scaled up with impunity under the ostensible backing of OSPC and its affiliates.

Meanwhile, the Commissioner for Energy and Mineral Resources, through the State Electricity Regulatory Commission, maintained that the unauthorised consumers are customers of OSPC, but that BEDC should continue to pay for their electricity consumption under the guise of the Ondo State Electricity Market.

However, BEDC said allowing uncontracted third parties to trespass on licensed distribution infrastructure without authorisation or clear payment obligations poses a systemic threat to market stability and the protection of private investments.

BEDC warned that continued disregard for established legal, regulatory, and contractual frameworks will fundamentally weaken market discipline and discourage critical investments across Nigeria’s Power Sector.

While reaffirming its commitment to the rule of law, regulatory compliance, and the provision of premium electricity services to the people of the tate, BEDC called on all stakeholders within the NESI to immediately intervene and call all complicit parties to order.