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A hotel in Delta State known as Lascurt International Hotel has accused the Benin Electricity Distribution Company (BEDC) of demanding a whopping sum of N40 million to connect to public power supply.
Managing Director (MD) of Lascurt International Hotel, Mr. Austin Wareyai made this known in a statement on Wednesday while lamenting the exorbitant amount, revealing that the hotel had already spent over N11 million in efforts to get the facility connected to power supply.
Mr. Wareyai narrated that prior to the opening of the hotel, the management had applied to BEDC to connect the facility to 33KVA, which he said was approved, and necessary payments running into over N8 million made.
“But to my surprise we were given 11KVA transformer. We applied for 33KVA because that is the line that produced stable electricity and which other business outlets in this area are using.
“They told us that since our facility is a mega one, we should go for a 500KVA transformer, telling us that is the only way it can work.
“We applied for 500KVA, bought the transformer and also provided all the logistics. Instead of the 33/500KVA, they brought 11/500KVA. We told them that what we bargained for was 33/500KVA, and that we paid for it. They said this is what they approved for us.
“In our own wisdom, we asked for the way forward and they said we have to increase the transformer and reapply for NEMSA approval. They brought another cost of about N18 million to buy One MVA transformer including construction and every other thing.
“We applied for it since that is what will make us have stable electricity to do our business. Having secured NEMSA’s approval for them to install the One MVA transformer, they said we should pay a sum of about N8.9 million as an additional security deposit.
“They said that we have to pay the money so that whenever we default on our monthly payment, they will use part of the money to offset the bill. Aside from that, they are also asking for about N4 million for an industrial meter. Where can we get all this money after all they have collected from us.
“In summary, we have spent over N11 million so far on a transformer. Now they are asking us to pay an additional N18 million for another transformer including construction. This is aside from the N8.9 million for two months security deposit they are asking for,” Wareyai narrated.
The MD revealed that, after spending so much, the hotel with an underground lounge bar and club house has been running on electricity generating plants since October 31, 2021 when it officially opened for business to the public.
Wareyai appealed to Governor Ifeanyi Okowa and the National Assembly (NASS) to intervene in the matter for the BEDC to install power in the hotel with over 100 staff in its employment list with more to be employed
He lamented that the multi-billion Naira facility might be forced out of business by BEDC due to the electricity issue if nothing is done to sway the electricity distribution firm, stressing that the development is not good for investors.
“Imagine in the last three months we have been running our facilities with an electricity generating plant. Imagine the cost implications of buying diesel. We are appealing to the state government to help us to sustain this business because we cannot run it without electricity,” the hotelier stated.
When contacted, BEDC
Public Relations Officer (PRO) in Effurun, Helen Ogagare, said she had informed management of the allegations.