The Ibadan Electricity Distribution Company (IBEDC) Plc said it disconnected power supply to the University College Hospital (UCH) in Ibadan due to an outstanding debt of N400 million.
IBEDC’s Chief Key Accounts Officer, Johnson Tinuoye, in a statement on Wednesday, said the decision was made after numerous unsuccessful attempts to engage with UCH’s management regarding the longstanding overdue balance, which had accumulated over six years.
He said, “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.
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“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.
“This means they generate energy at N400 per kilowatt, significantly higher than the tariff of N74 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.”
Tinuoye emphasised the need for adhering to payment obligations, particularly amidst challenging economic conditions. (NAN)
