The National energy Regulatory Commission (NERC) and the Kano Electricity Distribution Company (KEDCO) have been immediately ordered by the Federal High Court in Kano to refrain from enacting a new, increased electricity rate for Band A customers in the DisCo’s franchise region.
Recently, NERC ordered electricity distribution firms to impose higher prices on Band A customers in order to guarantee a steady supply of electricity for those who can pay it.
Many Nigerians, however, took issue with NERC for moving the majority of its customers to Band A while the country’s electrical supply remained erratic.
On Thursday, however, Super Sack Company Limited, BBY Sacks Limited, Mama Sannu Industries Limited, Dala Foods Nigeria Limited, Tofa Textile Limited, and the Manufacturers Association of Nigeria Limited (MAN) as Applicants filed an ex-parte motion, and Justice A.M. Liman of the Federal High Court in Kano granted the interim order in response.
The decision prevented the tariff hike that was set to go into effect this month by NERC and KEDCO, pending a hearing and resolution of the motion on notice.
Furthermore, in the event that the Applicants refused to accept the increased pricing, the ruling forbade the defendants from intimidating or threatening to cut off their electrical supply.
A related development is that the House of Representatives has demanded that NERC halt the planned statewide rollout of the new electricity rate.
Rep for Ivo/Ohaozara/Onicha Federal Constituency, Ebonyi State, Kama Nkemkanma expressed worries about the “sudden hike in electricity prices in Nigeria” during the Tuesday plenary session and emphasized the importance of addressing important issues.
After the motion was approved, the House gave NERC the order to halt the implementation of the new tariff. The Committee on Power, Commerce, Delegated Legislation, and National Planning was also resolved to form a special committee in order to conduct a well-organized hearing on the regulation of the National Electricity Supply Industry (NESI).
The President of the National Industrial Court, the Trade Union Congress, the Minister of Power, the Chairman and Commissioners of NERC, the CEOs of all Nigerian energy utilities, and the leaders of Nigerian chambers of commerce will all be involved in this.