Wednesday, 12 April 2017


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The Management of Enugu Electricity Distribution Company (EEDC) met last Friday with the Enugu State Governor, Rt. Hon. Ifeanyi Ugwuanyi on the over N2.6Billion debt owed by the State Government. 

After the meeting, agreement was reached on clearing the outstanding; part of which is the immediate payment of N100Million to EEDC and subsequent payment of N200Million 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 accounts and agreed that the State owes EEDC slightly more than N2.6Billion. 

However, it was also agreed that another round of reconciliation of those accounts between EEDC and Enugu State Government will be carried out between 20th April and 4th May, 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 Prepaid meters in all Enugu State Government offices and secretariat.

"It is important that customers realize that EEDC is a private company in a highly regulated industry that relies solely on revenue derived from electricity delivered to them. With a total outstanding debt to NBET of over N77Billion, which includes the N2.6Billion owed by Enugu State, at 21% 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 N2.6Billion. 

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.

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.

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