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KEDCO Seeks Peace with Manufacturers

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KEDCO Seeks Peace with Manufacturers

byBilkisu Kasim
July 23, 2024
in Business
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On Monday, Kano Electricity Distribution Plc. (KEDCO) reached out to the Manufacturers Association of Nigeria and other dissatisfied customers, advocating for a resolution through peaceful dialogue. Sani Bala, the Head of KEDCO’s Corporate Communications, appealed for customer understanding, emphasizing that the company operates under rigorous regulatory standards and is committed to prioritizing customer satisfaction.

Bala proposed a round-table meeting to address and resolve the disputes, following a recent court decision that favored KEDCO against several parties including the Manufacturers Association and the Nigeria Association of Small-Scale Industrialists (Kano State Chapter).

This call for reconciliation comes in the wake of a legal battle where the plaintiffs, which included various business associations and companies, sought to overturn the April 2024 Supplementary Order that increased tariffs for Band A users.

Filed in May 2024, the lawsuit aimed to halt the tariff adjustment. However, on July 19, 2024, the Federal High Court of Nigeria in Kano ruled in favor of KEDCO, dismissing the lawsuit as baseless and invalid.

Judge Simon Amobeda’s ruling affirmed the legitimacy of the April 2024 Supplementary Order, which was implemented in line with the Multi-Year Tariff Order 2024 and adhered to the Electricity Act’s provisions.

The court found no substantial evidence of discrimination against Band A customers and concluded that the increased tariffs were appropriate given the higher level of electricity supply they receive. This judgment supports the rationale behind the tariff increase and reinforces KEDCO’s position.

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Bilkisu Kasim

Bilkisu Kasim

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