Nigeria: High Court Dismisses Manufacturers’ Suit Against NERC, Kano Disco

A Nigerian High Court has dismissed a suit filed by the Manufacturers’ Association of Nigeria (MAN), challenging the recent electricity tariff hike by Kano Electricity Distribution Company (KEDCO).

The court presided over by Justice Simon Amobeda, on Friday, July 19, 2024, said the suit lacked merit and, therefore, dismissed it without any cost.

The Nigerian Electricity Regulatory Commission (NERC), in May this year, approved the hike in electricity tariff.

However, some aggrieved electricity customers, alongside MAN, Nigeria Association of Small-Scale Industrialists (Kano State Chapter), Tofa Textile Limited, Dala Foods Nig. Ltd., Mama Sannu Ind. Ltd., BBY Super Sack Ltd. and Super Sack Co. Ltd, dragged KEDCO and NERC to court, seeking to stop the implementation of Supplementary Order on Band ‘A’ tariff increase.

However, the court held that contrary to the arguments of the plaintiffs, the April 2024 Supplementary Order was validly made under the Multi-year Tariff Order (MYTO) 2024, in compliance with the provisions of Section 116 (6), (7), (8), (9) and (10) of the Electricity Act.

The court further ruled that the plaintiff failed to produce any cogent, credible and convincing evidence before it that showed Band ‘A’ customers were treated worse than other categories, therefore, it was only justifiable that Band ‘A’ users paid more than other category of customers, being the ones entitled to more electricity supply per day; therefore, dismissed the plaintiffs’ claim that the April 2024 Supplementary Order to the MYTO 2024 was discriminatory, unlawful and unconstitutional.

Following the judgment, KEDCO called for reconciliation with the aggrieved customers for the growth of the country’s power sector.

A statement issued by Sani Bala Sani, the Head of Corporate Communication, said the KEDCO Board and Management believed that manufacturers are very important and have affirmed that they would continue to support manufacturers with improved supply and cost efficiencies in the Kano.

Source: https://energynewsafrica.com