We Disconnected UNILAG Due To N1 Billion Debt, Says EKEDC
. We Want To Remain on Band B, UNILAG Insists
The Eko Electricity Distribution Company (EKEDC) has disclosed that the disconnection of the power supply to the University of Lagos (UNILAG), was as a result of N1 billion debt.
Meanwhile, the UNILAG management had earlier noted that the university was unilaterally migrated from Band B to Band A when the differential tariffs were introduced by NERC, which raised the bill from an average of 150-180 million/month to almost 300 million/month in the June 2024 bill.
The utility company, in a statement made available to Slye News by its General Manager, Corporate Communications and Strategy, Babatunde Lasaki, said the claim that the institution made a payment of ₦180 million for July does not hold waters.
He explained: “It is imperative to clarify that this payment only partially defrays a small fraction of the outstanding debt owed by the university, which significantly exceeds the amount paid and currently stands at over N1Billion naira. (#1,035,197,446.43)
“It is imperative to state here that UNILAG was disconnected from the power grid on Tuesday, August 27, 2024, due to recurring accumulated outstanding payments and following multiple engagements between the UNILAG team.
“Also, in adherence to regulatory requirements and procedures, disconnection notices were served at different times to the university, and principal staff of the institution; The Vice-Chancellor, Prof. Folasade Ogunsola (VC), Director of Works Engr. Olaniyi, and Head Technical Department Engr. Ajayi were among those engaged several times by EKEDC team led by the GM, Technical Services, Engr. Femi Olaoye, AGM, Key Customer Group, Mr. Abdulkadir AbduRahman and the Ijora District Business Manager, Mr. Clement Sanyaolu.
“To set the record straight, UNILAG’s migration from Band B to Band A tariff followed due process, with adequate engagements and communication regarding the implications. The tariff increase reflects the institution’s average 23 hours of supply availability, aligning with Band A criteria,” he stated.
Lasaki added that EKEDC has consistently engaged in open dialogue with UNILAG to address concerns regarding the tariff increase and the outstanding debts.
“ While the university has expressed its preference to remain on Band B, it is important to note that tariff classifications are determined based on supply availability and cannot be altered arbitrarily.
“It is also noteworthy that UNILAG gets power supply from the grid on two dedicated feeders for their consumption.
“While EKEDC values the relationship with UNILAG, it is important to note that as a distribution company, we procure energy from the market and must meet our remittance obligations to sustain the sector and our business.
“After exhausting all negotiation options without reaching a satisfactory resolution, the institution was disconnected on August 27, 2024.
“We understand the inconvenience caused by this situation and appeal to the members of the university community for their understanding,” he stated.
He assured that EKEDC is committed to providing reliable electricity services, noting that this is contingent on the timely settlement of bills and adherence to agreed-upon terms.
“EKEDC remains committed to resolving this issue amicably and in a manner that serves the best interests of both parties. We have initiated further discussions with UNILAG’s management to explore feasible solutions, including a phased repayment plan that aligns with the university’s budgetary constraints,” he stated.
The UNILAG management had earlier decried the disconnection in a statement.
The university stated: “The University of Lagos management wishes to appeal to members of the university community over the power outage on campus due to disconnection of electricity supply by EKEDC.
“The university just paid the sum of ₦180 million to EKEDC but was abruptly cut off from electricity supply Tuesday, August 27, 2024, without prior notice of disconnection and despite engaging with the management of EKEDC the company has declined to reconnect in spite of previous agreements.”
UNILAG management noted that the university was unilaterally migrated from Band B to Band A when the differential tariffs were introduced by NERC, which raised the bill from an average of 150-180 million/month to almost 300 million/month in the June 2024 bill.
The university further stated that it engaged the management of EKEDC in talks over the exorbitant June bill and reiterated its preference to remain on Band B and its absolute incapability to pay bills generated on Band A.
Other reasons given include the university’s inability to pay more than N180 million per month till the end of this budget year and that the outstanding will be captured in the next budget.
The management said: “Throughout its meetings with EKEDC, the university made it abundantly clear that it could never afford the Band A tariff on which the university was placed.
“Within two weeks of this meeting, we were slammed with a bill of almost half a billion (N472 million) for the month of July further increasing our debt burden.
“We kept to our word and ensured we paid 180 million on the 20th of August but on the 27th of August without any prior notice, EKEDC disconnected the university.
“Despite the foregoing, management regrets the situation and is taking necessary steps to address the issue.
“In the meantime, members of the university community are enjoined to remain calm and note that there would be a rationing of power supply across campus until further notice.
“The schedule of rationing will be released so that members of the community can adequately plan.”it stated.
