New Tariff: KEDCO Drags MAN To Court Over Unlawful Interference

Kano Electricity Distribution Company (KEDCO) has dragged the Manufacturers Association of Nigeria (MAN) to the High Court of Federal Capital Territory, Abuja, over unlawful interference with its business, causing huge financial damage to the Company.

KEDCO said the actions of MAN, has subjected the Company to a huge revenue loss of up to over N5.3 billion per month.

It is reported that the Company also accused MAN of unlawful interference with its business, despite their knowledge about FG’s removal of electricity subsidy for Band A customers and fluctuations in various macro-economic indices such as exchange rates, gas price, inflation and other factors responsible for computing electricity tariff.

According to a statement issued by Sani Bala Sani, KEDCO’s Head Corporate Communications, on Thursday, said these factors have warranted KEDCO’s cost-reflective tariff increase from ₦159.13 per kWh to ₦225.00 per kWh.

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The statement attributed the conspiracy to actions including a circular signed and issued by the Director General of MAN, Segun Ajayi-Kadir, directing all 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. This has led customers on Band A to breach their obligations to pay the new approved tariff.

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

‘’KEDCO, vehemently lamented MAN’s mindful intention to protect its interest at the expense of causing damage to its business and employees. This action does not only cause unbearable losses to KEDCO, but it also hinders the company’s ability to procure more energy to serve its teeming customers, which is a threat to its corporate sustainability and Nigeria’s power sector growth.

‘’KEDCO, therefore, despite several engagements with MAN and its affiliate associations, is left with no option than to drag the MAN to court for committing the tort of procuring a breach of contract and unlawful interference and conspiracy against its business.