Federal High Court halts implementation of new electricity tariff

A Federal High Court in Kano has issued an order restraining the National Electricity Regulatory Commission (NERC) and the Kano Electricity Distribution Company (KEDCO) from implementing the new electricity tariff for Band A consumers.

The court’s decision, made in response to a suit marked FHC/KN/CS/144/2024 filed by Super Sack Company Limited and BBY Sacks Limited, along with others such as Mama Sannu Industries Limited, Dala Foods Nigeria Limited, Tofa Textile Limited, and Manufacturers Association of Nigeria Limited, came after an ex-parte motion by Abubakar Mahmoud, counsel to the plaintiffs.

Presiding Judge Abdullahi Liman ordered NERC and KEDCO to halt the planned tariff increase until the court hears and decides on the motion filed before it.

Additionally, the court’s order prohibits the defendants from intimidating or threatening to disconnect electricity supply to the applicants for refusing to accept the new tariff.

In April, NERC had approved a tariff hike for customers classified under Band A. Under the new tariff, customers in this category, who receive 20 hours of electricity daily, would see their rate rise to N225 per kilowatt, up from N66 starting from April 3.

This abrupt increase has faced criticism from the House of Representatives and other stakeholders, who have urged NERC to suspend the implementation of the new tariff.