Federal High Court Stops Implementation of New Electricity Tariff

Amidst legal proceedings, a Federal High Court in Kano has intervened as it stops the implementation of electricity tariff adjustments.

Various entities, including Super Sack Company Limited and BBY Sacks Limited, initiated the lawsuit marked FHC/KN/CS/144/2024.

Acting on an ex-parte motion presented by Abubakar Mahmoud, the presiding judge, Abdullahi Liman, issues a restraining order.

The order bars the National Electricity Regulatory Commission (NERC) and Kano Electricity Distribution Company (KEDCO) from enforcing the new tariff.

Furthermore, the defendants are prohibited from intimidating or disconnecting electricity for non-compliance with the tariff increase.

In April, the National Electricity Regulatory Commission (NERC) approved a tariff increase specifically targeting Band A consumers, a decision that triggered significant backlash from stakeholders and members of the House of Representatives. This move, aimed at revising the electricity pricing structure, met with strong opposition due to concerns about its potential ramifications on consumers’ financial burdens and overall cost of living.

Under the new tariff regime, Band A consumers, who were previously paying a lower rate, now face a considerable hike in their electricity bills, with the price per kilowatt soaring to N225. This substantial increase has intensified the criticism against NERC, with critics arguing that such abrupt adjustments could disproportionately affect households and businesses already grappling with economic challenges. As discontent mounts, calls for NERC to suspend the implementation of the tariff change have grown louder, underscoring the urgency of addressing the concerns raised by affected parties.

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