The Kano Electricity Distribution Company has announced its intention to decrease electricity supply to Kano, Katsina, and Jigawa states.
This decision comes as a result of a two-week-long court injunction obtained by the Manufacturers Association of Nigeria, which has hindered KEDCO’s ability to purchase power.
Additionally, it said non-payment from MAN customers has contributed to the impending power reduction.
This was contained in a statement by the Head, Corporate Communications Unit of the company, Sani Bala Sani, a copy of which was made available to PUNCH Online on Sunday.
According to the statement, the measure was necessary because “Electricity is sold to KEDCO from the generating stations at a rate of ₦140/kWh (without taxes and margin), while MAN wants that same energy be sold to them at ₦77/kWh.
“With MAN encouraging all its members not to pay the tariff, KEDCO is unable to buy electricity to supply and will begin ramping down supply in Kano, Katsina and Jigawa immediately.
“So, we would like to provide an update to the general public regarding the activities of the Manufacturers Association of Nigeria Kano against the Kano Electricity Distribution Company and by extension the public interest of Kano, Katsina and Jigawa residents and citizens.
“Between the 23rd of April, 2024 and the 3rd of May, 2024, the Manufacturers Association of Nigeria, Kano Branch and about 41 members of MAN issued letters to KEDCO rejecting the new tariff for Band A, copying the Nigerian Electricity Regulatory Commission.
The statement added, “Aside from the public issuance of the April 2024 Tariff Order by NERC and pronouncements from the Federal Government, On the 23rd of April KEDCO also informed all Maximum Demand (MD) Customers in Band A through direct notices of the change in tariff driven by reduction in subsidies by the Federal Government.
“KEDCO had taken time to explain that the change in tariff was driven by the decision to prioritize ordinary citizens and lower consumption groups for subsidy. The subsidy had become too burdensome, and the FG was reducing the allocation of subsidies in Kano, Katsina and Jigawa from a peak of almost N19 billion per month to about N10 billion per month with a focus on lower supply and lower income groups.
“The pricing for gas has gone up significantly impacting the cost of electricity in Nigeria. In the letter to Max Demand Band A customers, KEDCO also informed the customers that under new ownership, measures were being taken to increase generation in the network through bilateral contracts with lower-cost suppliers and enhanced renewable mini-grids.
“KEDCO has always prioritised industrial and public service feeder supply (such as the Water Works) to ensure employment is protected (including the interest of MAN) as well as public services given the limited energy our network receives from the National Grid being at the end of the grid with limited power supply.”
The company said Band A MD Customers on 41 feeders (many from MAN) have been enjoying 23 to 24 hours of mainly uninterrupted supply since April 1st, 2024 per the NERC Order.
“Despite this and without warning MAN and its members took KEDCO to court to halt the implementation of the new tariff,” the company said.
The presiding judge on May 2, 2024, issued an injunction compelling KEDCO to suspend the new tariff in Kano.
“MAN is essentially demanding that the allocation of subsidies that are being prioritized to ordinary citizens in our franchise area from the Federal Government be forcefully reallocated to them. This is even though prices for all items in Nigeria have gone up through incremental pricing by manufacturers and other service providers as can be seen from the persistent inflation in the country.
“MAN did not have any meeting with KEDCO or NERC before proceeding with court actions and without understanding the implications of their actions or at worst not caring,” he said.
He, therefore, called on the State Government and all well-meaning citizens to encourage MAN to come to the table and become a productive partner for supplying power to citizens in Kano, Katsina and Jigawa.
“KEDCO has ideas and solutions that will help MAN without disrupting KEDCO’s operations and the provision of energy to citizens. KEDCO is not able to sell a product for 77 Naira while purchasing at 140 Naira. KEDCO also does not believe MAN’s priorities should be higher than that of ordinary citizens,” he said
