Ibadan electricity distribution company (IBEDC) on Thursday said that the suspension of its board by Nigerian electricity regulatory commission (NERC) is “unwarranted and injudicious” because it had complied with the conditions agreed upon by both parties (IBEDC and NERC) concerning the N5.7 billion loan facility granted to IBEDC’s core investor, Integrated Energy Distribution &Marketing Limited (IEDM).
According to Seye Alayande, the company’s secretary and managing director of IEDM, IBEDC and NERC had reached an agreement that the repayment of the loan plus interests would be made from the refund of the sum due from the federal government on the stalled Yola Electricity Distribution company transaction, which was also acknowledged by the Bureau of Public Enterprises (BPE).
NERC said on Wednesday that it was suspending the IBEDC board because the DisCo had failed to follow its directives which includes a N50 million fine on IBEDC, the recovery of the N5.7 billion loan given to IEDM, and the recovery of the unauthorized interest payments of N47.97 million paid to Oceanic Marine Solutions Group.
IBEDC however admitted that IEDM had defaulted in the payment of N150 million monthly which was also agreed to by all the parties involved. The last repayment was in April but Alayande said that as at June 14, IEDM had cleared all its outstanding payments up till May 2018.
The company said it hopes NERC will review and reverse what it described as an “hasty decision.”