Ibadan DisCo: We disconnected UCH over N400m debt

The Ibadan Electricity Distribution Company (IBEDC) Plc says it disconnected power supply to the University College Hospital (UCH) in Ibadan, the Oyo State capital, due to an outstanding debt.

The IBEDC Chief Key Accounts Officer, Johnson Tinuoye, in a statement issued on Wednesday, March 27, 2024, said the amount owed the company by UCH is N400 million.

Tinuoye said 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, failed.

He noted: “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 fulfil obligations to GenCos and purchase gas for power generation, contributing to the nationwide issue of low power supply.

UCH: We’re not owing IBEDC N495m

“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.”

Tinuoye, who stated that UCH is not the only teaching hospital within IBEDC’s franchise, added: “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.

He further stated that 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,” he said.

UCH had earlier said it did not owe IBEDC N495 million bill, as being insinuated.

The UCH spokesperson, Funmilayo Adetuyibi, in a statement issued on Wednesday, said the hospital administration, led by Prof. Jesse Otegbayo, assumed office on March 1, 2019, and inherited over N27 million as of February 27, 2019, adding that the hospital had since ensured the monthly payment of bills brought by the IBEDC.

The Star