The Enugu Electricity Distribution Company, EEDC, has faulted the resolution by the Enugu State House of Assembly asking it (EEDC) to leave the state over alleged poor services to its customers.
The House of Assembly has asked the EEDC to leave the state over what it described as its poor services and over- billing of customers.
But, reacting to the vote of no confidence passed on it by the House, weekend, the EEDC said the action of the House followed the disconnection of power to all government ministries and agencies in the state over debt of over N77 billion by customers of which N2.6 billion was owed by the government.
It said: “While EEDC is required to distribute the power it receives to its customers, the customers are equally obligated to pay for the energy they consume.
“There is no way EEDC can sustain its operations and services as well as that of the electricity value chain if customers do not pay for the electricity they consume.”
A statement entitled “EEDC parleys Enugu State government over N2.6 billion outstanding debt,” signed by the Head, Communication, EEDC, Mr Emeka Eze, in Enugu, yesterday, read in part: “The management of EEDC, met last Friday with the Enugu State Governor, Ifeanyi Ugwuanyi, on the over N2.6 billion debt owed by the state government.
“After the meeting, agreement was reached on clearing the outstanding; part of which is the immediate payment of N100 million to EEDC and subsequent payment of N200 million before end of April 2017.
“Prior to now, a joint committee of the Enugu State government led by the Commissioner for Works and staff of EEDC led by the Head of Revenue Cycle Services had reconciled the state government’s accounts and agreed that the state owes EEDC slightly over N2.6 billion.
“However, it was also agreed that another round of reconciliation of those accounts between EEDC and Enugu State Government will be carried out between April 20 and May 4, 2017. Upon this final reconciliation, a payment plan will be negotiated between EEDC and the State Government.
“It was equally agreed that EEDC will install pre-paid meters in all Enugu State government offices and secretariat.
“With a total outstanding debt of over N77 billion, which includes the N2.6 billion owed by Enugu State, at 21 percent interest rate, EEDC had no choice but to disconnect some of the state government offices.”
“Unfortunately, the Enugu State House of Assembly, apparently not fully briefed on the negotiations between the state government and EEDC, rushed to the vote of no confidence in EEDC. No private company can afford to continue to provide services on credit to a customer owing over N2.6 billion.”
“We hope that the Assembly will react differently when fully briefed. Sadly, our highest debtors are Ministries, Departments and Agencies, MDAs, of the various levels of government.
“The electricity supply value chain is facing enormous challenge, which is general and not peculiar to EEDC alone; customers therefore need to appreciate this fact. EEDC is committed to the development of not just Enugu State, but the entire South East states; and has been carrying out its operations ethically and in compliance with regulatory guidelines.”