IBEDC disconnects UCH power supply over N400m debt

Management of Ibadan Electricity Distribution Company (IBEDC) Plc says it was as compelled to disconnect the power supply to the University of Ibadan College Hospital (UCH) due to an outstanding debt.

IBEDC’s Chief Key Accounts Officer, Johnson Tinuoye, in a statement issued on Wednesday in Ibadan, said that the amount owed to the company by UCH stood at N400 million.

Tinuoye said 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.

“Unpaid electricity bills hinder DISCOs’ abilities to fulfill 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.

“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.

According to him, UCH is not the only teaching hospital within IBEDC’s franchise.

“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,” he said.

Tinuoye emphasised the need for adhering to payment obligations, particularly amidst challenging economic conditions.

He further stated that 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,” he said.