The Niger Delta Power Holding Company (NDPHC) has signed a framework agreement with the Benin Electricity Distribution Company, BEDC, to deliver an additional 250MW from stranded power to the customer within the franchise area.
At the signing ceremony in Lagos, the NDPHC Managing Director, Mr. Chiedu Ugbo, said the agreement which started with the initiation of the National Integrated Power Project by the Federal Government in 2004 it funded the initiative to stabilize the country’s power sector took immediate effect.
As a result of this, the government incorporated Niger Delta Power Holding Company as a limited liability company to serve as a legal vehicle to hold the National Integrated Power Project for its States and Local Governments.
Mr. Ugbo said since then, the Nigeria electricity supply industry has developed significantly from the construction of Niger Delta Power Holding Company’s 10 power plants with a combined capacity of over 5,000mw, which over 4,000Mw has been completed to the privatization transactions which the Benin Electricity Distribution Company emerged as one of the 11 companies in Nigeria.
He recalled that the two companies had in 2020, commenced exploring options to collaborate to deliver safe and reliable power to customers of the Benin Electricity Distribution Company’s franchise area.
“The project will enable us to deliver more 250mw of power to customers of the Benin Electricity Distribution Company’s franchise areas in Edo, Delta, Ondo, and neighbouring states and to also help satisfy its customers with reliable power and achieve an enhancement of its network and infrastructure,” he said.
“Niger Delta Power Holding Company has been concerned about the “insufficient dispatch of its power generation capacity, as well as liquidity challenges which means that only a small proportion of the power dispatched gets paid for. Meanwhile, many consumers remain un-served or underserved,” Mr Ugbo added.
The evolution, according to him, has presented the industry players, with unique challenges.
He said for the distribution firms, the significant capital investments required to upgrade their respective networks have been difficult to raise due to industry challenges.
Meanwhile, the Benin Electricity Distribution Company, Chief Executive Officer, Mrs. Funke Osibodu, said her company aims at delivering incremental power from the NDPHC underutilized or stranded capacity to several industrial and commercial hubs through multiple solutions across the certain locations in Delta, Edo, Ondo and Ekiti for the electricity value chain.
She said under the agreement, the two companies will provide end-to-end power solutions across the value chain to deliver a minimum of 250mw of additional power.
She noted that the focus will be the power supply to certain areas as well as upgrading of all critical distribution infrastructure.
Nnenna.O
