Electricity tariff hike: KEDCO drags MAN to court over N5.3bn monthly losses

Electricity tariff hike: KEDCO drags MAN to court over N5.3bn monthly losses
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The 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 N5.3 billion monthly loss.

KEDCO disclosed this in a statement on Thursday by its, Head of Corporate Communications, Sani Bala Sani

Following the approval by the Nigerian Electricity Regulatory Commission on April 3, 2024, KEDCO and other discos increased the electricity tariff to N225.00 per Kilowatt-hour from N159.13 per kWh for customers in band A, getting 20-24 power supply daily.

However, KEDCO in the statement said a directive issued by the Director General of MAN, Segun Ajayi-Kadir, asking all its members, including other Band A customers, to disregard their obligations and pay the old tariff rate rather than the statutory new tariff, has caused the company huge financial loss.

“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”, the statement reads in part.

DAILY POST recalls that the Nigeria Labour Congress and Trade Union Congress have called for the reversal of April’s electricity tariff hike.

Consequently, the demand for tariff reversal was part of the reason the organized labour went on strike on June 3, which led to the shutdown of the National grid, and another critical sector of the economy.

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Electricity tariff hike: KEDCO drags MAN to court over N5.3bn monthly losses

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