A Federal High Court in Kano has delivered a landmark ruling, issuing a restraining order against the National Electricity Regulatory Commission (NERC) and the Kano Electricity Distribution Company (KEDCO), effectively stalling the implementation of a contentious new electricity tariff targeting Band A consumers.
The court’s decision, prompted by a suit marked FHC/KN/CS/144/2024, represents a significant victory for the plaintiffs, including 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.
The legal battle, ignited by the plaintiffs’ objection to the tariff hike, saw Abubakar Mahmoud, their counsel, present an ex-parte motion before the court. Responding to the motion, the presiding judge, Abdullahi Liman, issued a compelling order, restraining NERC and KEDCO from proceeding with the impending tariff increment until the motion on notice filed by the plaintiffs is duly heard and determined.
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Additionally, the court order prohibits the defendants from resorting to intimidation or threats to disconnect the electricity supply of the applicants for refusing to accept the new increased tariff.
The contentious tariff hike, approved by NERC in April, targeted Band A consumers, who would have seen their electricity rates surge from N66 to N225 per kilowatt-hour. This abrupt escalation in tariffs sparked widespread criticism from various quarters, including the House of Representatives and other stakeholders, who called for the suspension of the tariff adjustment. Minister of Power Adebayo Adelabu defended the tariff increment, arguing that it would attract investors to the power sector, but the move was met with skepticism and opposition.
The legal intervention comes at a critical juncture, offering relief to consumers burdened by the prospect of escalated electricity bills amidst economic challenges.
Federal government boosts power supply with 625 MW additions.
As a legal showdown unfolds over proposed electricity tariff hikes, the federal government has announced a significant milestone in the energy sector, with the addition of 625 MW of power to the national grid. This augmentation, which elevates the grid’s wheeling capacity to 4800 MW, comes at a pivotal moment, coinciding with the contentious debate surrounding tariff adjustments targeting Band A consumers.
Bolaji Tunji, the special adviser on strategic communications to the Minister of Power, relayed this momentous development in a statement issued in Abuja. Tunji quoted Minister Adebayo Adelabu, who highlighted the significance of the achievement during the inauguration of key infrastructure projects aimed at bolstering the country’s power transmission capabilities.
Adelabu noted the transformative impact of these projects, underscoring their alignment with President Bola Tinubu’s vision for revitalizing the power sector and fostering reliable and sustainable energy infrastructure.
Among the projects inaugurated were the 63 Mega Volt Ampere (MVA), 132/33 Kilo Volt (KV) mobile station at Ajah, Lagos, and the 60MWA, 132/33KV power transformer in Birnin Kebbi, Kebbi.
According to the Minister, these initiatives represent a strategic deployment to address transmission capacity constraints, with the potential to enhance electricity access and reliability nationwide by over 1300 MV. He further extolled the collaborative efforts of stakeholders, including the FGN Power Company, the German government, and Siemens Energy, whose partnership facilitated the production and installation of critical infrastructure.
The minister also announced the remote installation of a 60MVA power transformer at Birnin Kebbi, Kebbi, heralding a further boost to transmission wheeling capacity by 123 MW. These endeavors, he asserted, are pivotal in paving the way for enhanced electricity supply for all Nigerians, underscoring the government’s commitment to driving progress and delivering tangible improvements in electricity access.
In light of these developments, Adelabu emphasized the importance of collective responsibility in ensuring the success of government initiatives, urging all stakeholders in the power sector to work diligently to meet project delivery timelines.
Echoing this sentiment, Kenny Anuwe, managing director of FGN Power Company, reaffirmed the company’s dedication to driving progress and facilitating tangible improvements in electricity access for all Nigerians, underscoring the collaborative spirit essential for advancing the nation’s energy agenda.
This addition, which underlines the government’s concerted efforts to enhance power infrastructure, provides a glimmer of hope for consumers grappling with epileptic electricity supply. Band A users have complained of not getting the required 20-hour electricity supply per day, under the new tariff initiative – a situation Distribution Companies, DisCos, attributed to insufficient power generation.
Nigeria is torn between capitalism and socialism, in fact we don’t even know what is suitable for us, based on the prevailing challenges. We have to agree on what is justiceable, so we don’t ridicule the Judiciary further. How do you enforce compliance when the energy supplier refuses to supply power? It’s impossible for the courts to compel Discos to distribute power, because the latter will simply argue that it lacks financial resources to do so. In such logjam, what can a court do? Nothing. This is like adding things that require spending money as rights, it’s an insane thing to do.
What we should be going to court for is whether what was paid for was delivered, and not whether a seller can increase prices, economics is not a respecter of any jurisprudence. If something requires N20 to be delivered and you are arguing you must get it at N10, it is not going to get to you, since nobody is willing to deliver at N10.
Even the House of Representatives that asked for suspension, what is the rationale? We are never going to attain the level where the power is first abundant before we start haggling prices, since increased investment is dependent on market based pricing. We have to be reasonable enough to understand our limitations.