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Electricity Distribution Company disconnects university college hospital over N400million debt

The management of Ibadan Electricity Distribution Company (IBEDC) Plc has disconnected electricity supply to University College Hospital (UCH), located in Ibadan, Oyo State Capital over the debt of N400 million.

Penpushing reports that Chief Key Accounts Officer, of the electricity distribution company, Johnson Tinuoye made this known in a statement explaining that the management was compelled to disconnect the power supply due to an outstanding debt.

The accounts officer added that the drastic measure came after several attempts to engage with the hospital’s management regarding the substantial overdue balance, which had persisted for over six years, had failed.

“Despite numerous written correspondences and multiple meetings, UCH management has displayed an uncooperative attitude toward addressing the outstanding debt. IBEDC’s fiduciary responsibility to its stakeholders and market operators necessitates timely and complete remittances, especially considering the liquidity crisis facing DISCOs’, Tinuoye said

“Unpaid electricity bills hinder DISCOs’ abilities to fulfil obligations to GENCOs and purchase gas for power generation, contributing to the nationwide issue of low power supply. It’s worth noting that UCH operates more than 70 diesel-generating sets, consuming diesel at 1,600 Naira per litre’, the statement added.

‘This means they generate energy at 400 Naira per kilowatt, significantly higher than the tariff of 74 Naira per kilowatt that IBEDC sells to UCH. Additionally, IBEDC has provided infrastructure to ensure 20-24 hours of dedicated supply to UCH, yet they have refused to settle their outstanding debt or propose a workable repayment plan,” he said.

Penpushing further reports that the Ibadan Electricity Distribution Company (IBEDC) disclosed that the University College Hospital (UCH) is not the only teaching hospital within its franchise, hence, there should not be exemption over failure to offset bills.

‘Teaching hospitals in Obafemi Awolowo University, Ile-Ife, University of Ilorin Teaching Hospital and others in Ogun State promptly settle their bills. IBEDC questions why UCH differs in this regard’, the statement said.

Penpushing also reports that Tinuoye emphasised the need for adhering to payment obligations, particularly amidst challenging economic conditions, adding the National Electricity Regulatory Commission (NERC) has warned DISCOs of potential licence withdrawal for non-performance.

‘We encourage all customers to pay for electricity consumption promptly to enable the company to meet its obligations effectively, provide reliable services and ensure the viability of the sector’, the statement reads.

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