N2.6b debt: EEDC, Enugu State reach agreement
Enugu State Government has entered an agreement with the management of Enugu Electricity Distribution Company (EEDC), to clear a whooping N2.6billion outstanding debt owed the electricity company by the state government.
In the agreement, following a meeting held last Friday between the management of EEDC with the state governor, Hon. Ifeanyi Ugwuanyi, the state immediately made a payment of N100million with a promise of subsequent payment of N200million as part payment of the debt before the end of April 2017.
Emeka Ezeh, Head, Corporate Communications of EEDC said in a statement that 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.
The statement read: “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”.
Ezeh said that 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 the state, at 21% interest rate EEDC had no choice but to disconnect some of the state government offices,” he said.
Ezeh noted that 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
He however observed that 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.
