The Federal High Court in Kano has issued an interim order barring the National Electricity Regulatory Commission (NERC) and the Kano Electricity Distribution Company, (KEDCO) from enacting a new increased electricity tariff for Band A consumers in the DisCo’s franchise area.
Recall that NERC had of late, mandated electricity distribution companies to charge Band A consumers inflated tariffs to ensure a stable electricity supply for those who are able to afford it.
Nigerians, had however, criticized NERC for relocating most consumers to Band A while the band was still experiencing unreliable power supply.
However, Justice A.M. Liman of the Federal High Court in Kano, had granted the provisional order on Thursday, in response to an ex-parte motion brought by A.B. Mahmoud, representing 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) all as Applicants.
The ruling also stopped NERC and KEDCO from executing the tariff increase, which was slated to take effect this month, until a hearing and determination of the motion on notice was concluded.
In addition, the order barred the defendants from intimidating or threatening to remove the Applicants’ electricity supply for non-acceptance of the new tariff.
Why It Matters:
The court’s decision spotlights NERC and KEDCO’s failure to adequately consult with stakeholders before implementing the new electricity tariff review and as such, shows a lack of transparency and inclusivity in the planning process.
Additionally, by mandating an increased tariff for Band A consumers without first addressing the root issues of unreliable power supply, NERC placed an unfair financial burden on consumers. Thus, the law court’s intervention came as a reminder for regulatory bodies to consider the socio-economic implications of their policies and prioritize the interests of consumers first and foremost.
Finally, the interim order serves as a check on the authority/power of NERC and KEDCO, reaffirming the principle of separation of powers and the rule of law.
Bottom Line:
The Federal High court’s intervention serves as a reminder of the crucial role of judiciary in ensuring that regulatory directives align with legal principles and protect the interests of all parties involved.
