New tariff: KEDCO drags MAN to court over unlawful interference

The Kano Electricity Distribution Company (KEDCO) has dragged the Manufacturers Association of Nigeria (MAN) to the High Court of the Federal Capital Territory, Abuja, over an alleged unlawful interference with its business, alleging that such action is causing a huge financial damage to the company. The head of Corporate Communication Department of the company, Sani […]

The Kano Electricity Distribution Company (KEDCO) has dragged the Manufacturers Association of Nigeria (MAN) to the High Court of the Federal Capital Territory, Abuja, over an alleged unlawful interference with its business, alleging that such action is causing a huge financial damage to the company.

The head of Corporate Communication Department of the company, Sani Bala Sani, noted this in a statement, adding that the action of the MAN had subjected the company to a huge revenue loss of over N5.3 billion per month.

The company also accused the MAN of unlawful interference with its business despite their knowledge of federal government’s removal of electricity subsidy for Band A customers and fluctuation in various macro-economic indices, such as exchange rates, gas price, inflation and other factors responsible for computing electricity tariff. It also stated that these factors warranted KEDCO’s cost-reflective tariff increased from N59.13 per kWh to N225.00.

The statement also accused the MAN of conspiracy, including issuing a circular signed by its director-general, Segun Ajayi-Kadir, directing its members, including other Band A customers, to disregard their obligations and pay the old tariff rate on account, rather than the statutory new tariff as approved by the regulator.

He stated that the action of the MAN made it to unfairly bear the burden of federal government’s subsidy removal on Band A customers and the attendant losses, taking cognizance of the fact that the KEDCO also has an obligation to pay power generating companies a cost-reflective tariff.