Ibadan Electricity Distribution Company (IBEDC) has reacted to the suspension slammed on it by the Nigerian Electricity Regulatory Commission, NERC as injudicious and unwarranted.
It said the action was at variance with the understanding that was reached with the Bureau for Public Enterprises (BPE).
The Bureau of Public Enterprise was the agency that sold the company on behalf of the federal Government.
According to the company in a statement, it said:
“The Board of the Ibadan Electricity Distribution Company, IBEDC, received with shock and disbelief the decision of the Nigerian Electricity Regulatory Commission, NERC to suspend all executive and non-executive directors of IBEDC in its order of NERC/181/2018 dated 19th June 2018.”
The company stated that the suspension which was premised on alleged non-compliance with the repayment terms of investors’ commitment to the company is not only unwarranted but injudicious given the circumstances and realities of issues at stake.
“We say so for the following reasons: Firstly, as NERC rightly observed in its Order, IBEDC complied with the payments of the fine and interest on the pre-takeover expenses as imposed by the Regulatory Authority. Secondly, NERC and IBEDC reached an understanding in respect of the ₦5.7billion outstanding due for payment by Integrated Energy Distribution & Marketing Group Limited (IEDMG).”
The two parties according a statement signed by Seye Alayande, the company secretary reached an understanding that the repayment of the N5.7billion plus interests would be made from the refund of the sum due from the federal government on the stalled Yola Electricity Distribution Company transaction. This position was to the knowledge of the Bureau of Public Enterprises, BPE.
The company secretary said that the understanding from BPE, which was conveyed to NERC was that the refund which had been due to IEDMG as far back as 2015, could only be made after the 2018 Appropriation Bill is signed into Law.
He said to demonstrate commitment and good intention, IEDMG reached an understanding with NERC to pay ₦150million monthly to IBEDC beginning from January 2018, while awaiting the refund from BPE in respect of Yola transaction.
“It is true, as NERC claimed, that as at 20 April 2018, the payment for January February and an additional ₦130million had been effected.”
More importantly, however, is the fact that as at Thursday, 14th June 2018, IEDMG had made all outstanding payment up till May 2018, in respect of the monthly N150million commitment, he said.
The IBDC boss said it is for this reason that the Board of IBEDC is at a loss over this seemingly hasty decision to suspend the directors who had not only demonstrated willingness and commitment to fulfilling its financial obligations to IBEDC, but have collectively shown dedication to the cause of the company.
He said it is the hope the company that NERC will take a second look at the issue in contention and reverse this decision in the interest of all the stakeholders and the nation.
The Nigerian Electricity Regulatory Commission on Wednesday announced the suspension of the Board of Directors and other key management staff members of the Ibadan Electricity Distribution Company on account of the firm’s default in the recovery of an inappropriate shareholder loan of N6bn granted to Integrated Energy Distribution and Marketing Group Limited by the Disco.
The IEDMG is the core investor in the IBEDC following the privatisation of the electricity distribution companies by the Federal Government in November 2013.
The commission stated that the suspension of the board of directors of the IBEDC was enforced through its Order No. NERC/181/2018 of June 19, 2018.
It explained that the loan was granted by the IBEDC from funds released to all power distribution companies by the Central Bank of Nigeria under the Nigeria Electricity Market Stabilisation Fund for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses.
