Federal High Court Dismisses Suit Against Kano Electricity Tariff Hike
In a landmark ruling, the Federal High Court sitting in Kano has dismissed a lawsuit filed by the Manufacturers Association of Nigeria (MAN) challenging the recent electricity tariff hike by the Kano Electricity Distribution Company (KEDCO). The court’s decision upholds the hike approved by the Nigerian Electricity Regulatory Commission (NERC).
The lawsuit was brought forward by MAN, alongside various aggrieved electricity customers, in May 2024. The plaintiffs sought to halt the implementation of the Supplementary Order on Band A tariff increase, citing concerns over the tariff hike’s impact on their businesses. However, the presiding Judge, Justice Simon Amobeda, ruled on July 19, 2024, that the suit lacked merit and was therefore dismissed without any cost to the defendants.
In his judgment, Justice Amobeda further concluded that the April 2024 Supplementary Order was validly made under the Multi-year Tariff Order (MYTO) 2024, adhering to the provisions of Section 116 (6), (7), (8), (9), and (10) of the Electricity Act. This means that the tariff increase remains in effect.
Following the court’s ruling, KEDCO has called for reconciliation with its aggrieved customers to foster growth in the country’s power sector. The decision comes amid ongoing controversy over electricity tariff hikes across the country, which has seen DisCos increase electricity tariffs on April 3 and July 2024, despite calls for reversal by the Nigeria Labour Congress and Trade Union Congress.
The outcome of the lawsuit may have significant implications for Nigeria’s power sector, as it sets a precedent for the validity of future tariff hikes by KEDCO and other Distribution Companies (DisCos). With the court’s ruling, KEDCO can now focus on implementing its revised tariff structure, while aggrieved customers can explore alternative means to address their concerns.
It remains to be seen how this ruling will affect the country’s power sector and whether it will lead to any changes in the future. For now, KEDCO is committed to working with its customers to achieve a more stable and efficient power sector in Nigeria.
