The Federal High Court, Kano Judicial Division, has ruled in favour of the Nigerian Electricity Regulatory Commission (NERC) and the Kano Electricity Distribution Plc. (KEDCO) regarding the controversial April 2024 Supplementary Order on Band A tariff increase.
NewsNGR recalled that in April 2024, NERC approved a controversial tariff increase for Band A customers, raising rates to N225/kWh effective April 4, 2024.
This decision was part of a broader transition from subsidized tariffs to a cost-reflective regime, aimed at improving service delivery and ensuring 20-24 hours of daily supply.
However, the increase, which represents a 300 per cent hike, faced significant backlash, leading to legal challenges from manufacturers and consumers concerned about affordability and fairness in the electricity market.
The Head of Corporate Communication of KEDCO, Sani Bala Sani, in a statement he issued on Monday, said his company’s legal dispute was initiated by the Manufacturers Association of Nigeria (MAN) along with other entities such as the Nigeria Association of Small-Scale Industrialists (Kano State Chapter), Tofa Textile Limited, Dala Foods Nigeria Ltd., Mama Sannu Ind. Ltd., BBY Super Sack Ltd., and Super Sack Co. Ltd., to halt the implementation of the tariff hike, claiming it was discriminatory and unlawful.
The statement added that Hon. Justice Simon A. Amobeda, presiding over the case, dismissed the suit on July 19, 2024, declaring that it lacked merit.
It added further that the court resolved all questions against the plaintiffs, affirming the credibility, validity, and legality of the April 2024 Supplementary Order under the Multi-Year Tariff Order (MYTO) 2024.
According to the statement, Justice Amobeda highlighted that the Supplementary Order was made in strict compliance with the provisions of Section 116 (6), (7), (8), (9), and (10) of the Electricity Act.
It stated further that the court’s judgment emphasized that the plaintiffs failed to provide compelling evidence to support their claims that Band-A customers were treated worse than other categories.
The ruling noted that Band A users, who receive more electricity supply daily, are justifiably charged more compared to other categories.
The disco, however, called for reconciliation with its aggrieved customers.
The company urged the Manufacturers Association of Nigeria and other dissatisfied customers to seek an amicable resolution through round-table discussions.
It reaffirmed its commitment to customer satisfaction and understanding, stressing its operation under stringent regulations, and emphasized the importance of manufacturers within its franchise area, promising continued support through improved supply and cost efficiencies.
The KEDCO’s management also reiterated its dedication to maintaining a customer-centric approach, appealing to customers for cooperation and understanding as the company navigates the complex regulatory landscape.