There was confusion on Wednesday as the Ibadan Electricity Distribution Company, IBEDC, announced that it has disconnected the University of Ibadan College Hospital, UCH, from power supply due to over N400 million outstanding debt.
Johnson Tinuoye, Chief Key Accounts Officer of IBEDC, announced the disconnection in a statement.
According to the firm, the move comes after exhaustive attempts to engage with the hospital’s management regarding the substantial overdue balance, which has persisted for over six years.
“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’ ability 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 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.
“It’s pertinent to highlight that UCH is not the only Teaching Hospital within IBEDC’s franchise. Teaching Hospitals in Obafemi Awolowo University, Ile-Ife, Osun State, University of Ilorin Teaching Hospital, Kwara State, and others in Ogun State promptly settle their bills. IBEDC questions why UCH differs in this regard.
“While recognizing hospitals’ crucial role in society, IBEDC emphasizes the necessity of adhering to payment obligations, particularly amidst challenging economic conditions. As our regulator, the Nigerian Electricity Regulatory Commission, NERC, has warned DISCOs of potential license withdrawal for non-performance, IBEDC encourages all customers to pay for electricity consumption promptly to ensure the viability of the sector,” the statement read.
Meanwhile, UCH, in a statement by its public relations officer, Funmilayo Adetuyibi, denied the outstanding debt claim.
“Our contention with IBEDC is the old bill inherited by this current administration.
“We paid N50 million in January 2024, N55 million in February 2024 and N45 million in March 2024,” she said.
DAILY POST reported that the staff of UCH had lamented that they couldn’t continue to work in darkness.
Credit Gist New Today News in Newspaper Nigeria Headlines