Eko DisCo disconnects power supply to UNILAG over ‘N1bn debt’

The Eko Electricity Distribution Company (EKEDC) has disconnected power supply to the University of Lagos (UNILAG) over N1 billion of unpaid bills.

The UNILAG management spoke on the power cut in a statement on Thursday.

The institution said it had recently paid N180 million to EKEDC, but its power was abruptly cut off on August 27 without prior notice.

“Despite engaging with the management of EKEDC, the company has declined to reconnect inspite of previous agreements,” the statement reads.

The management said the university had been moved unilaterally from band B to A when the Nigerian Electricity Regulatory Commission (NERC) introduced differential tariffs.

UNILAG said the change led to a significant increase in its monthly electricity bill, “which jumped from an average of N150-N180 million to nearly N300 million in June 2024”.

“The University engaged the management of EKEDC over the exorbitant June bill and reiterated its preference to remain on Band B, its absolute incapability to pay bills generated on Band A, its inability to pay more than 180million/month till the end of this budget year and that the outstanding will be captured in the next budget,” the statement further reads.

“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 2 weeks of this meeting we were slammed with a bill of almost half a billion (472m) for the month of July further increasing our debt burden.”

UNILAG said despite paying N180 million on August 20, its electricity was disconnected a week later.

The organisation assured the university community of working to address the issue with the EKEDC.

The university also called for calm, announcing that power supply across the campus would be rationed until further notice.

‘EKEDC ISSUED MULTIPLE DISCONNECTION NOTICES TO UNILAG’

In a statement to TheCable on Thursday, Babatunde Lakasi, EKEDC’s general manager of corporate communications and strategy, attributed the action to recurring accumulated outstanding payments, following multiple engagements with the UNILAG team.

He said the N180 million recently paid by the institution only covered a small fraction of the total debt, “which significantly exceeds” and currently stands at over N1 billion (N1,035,197,446.43).

The general manager said in adherence to regulatory requirements and procedures, EKEDC had issued multiple disconnection notices to the university.

“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,” Lakasi said.

“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.

“EKEDC has consistently engaged in open dialogue with UNILAG to address concerns regarding the tariff increase and the outstanding debts.”

Lakasi said tariff classifications are determined by supply availability and cannot be altered arbitrarily, noting that UNILAG receives power from the grid through two dedicated feeders.

“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,” he said.

“After exhausting all negotiation options without reaching a satisfactory resolution, the institution was disconnected on August 27, 2024.”

Lakasi acknowledged the inconvenience the situation has caused and appealed to the university community for their patience and understanding.

He said the DisCo remains dedicated to delivering reliable electricity services, but this depends on the prompt payment of bills and compliance with agreed terms.

The general manager reiterated EKEDC’s commitment to resolving the issue amicably and in a manner that benefits the parties involved.

He said the company has initiated further discussions with UNILAG to explore feasible solutions — including a phased repayment plan that aligns with the university’s budgetary constraints.