Court nullifies increment in electricity tariff

A Federal High Court in Lagos on Wednesday annulled the increment in the electricity tariff recently announced by the Nigerian Electricity Regulatory Commission(NERC).
Justice Mohammed Idris annulled the increment while delivering judgment in a suit filed by an human rights lawyer, Mr. Toluwani Yemi Adebiyi, against NERC and DISCO companies.

The judge described NERC's action as procedurally ultra vires, irrational, irregular and illegal.
Justice Idris, while relying on Sections 31, 32 and 76 of the Electricity Power Sector Reform Act(EPSRA) 2005, in deciding the substantive suit held that, "NERC acted outside the powers conferred on it by the Act and failed to follow the prescribed procedure.


"NERC has not shown that it acted in due obedience to the prescribed procedures and that there is no evidence that NERC complied with Section 76(6)(7)and (9) of the EPSRA Act," the judge said in his judgement.


"It is clear from the affidavit evidence that the increase in tarriff was done by NERC in defiance of the order of this court made on May 28, 2015 which directed parties in the case to maintain the status quo," Justice Idris further said.


According to justice Idris, the tarriff increase from July 1, 2015 was done in breach of the 'status quo' order. Adding that NERC's action, was clearly hasty, reckless and irresponsible


Justice Idris said, "This country is in a democracy where the rule of law shall prevail over impunity or whimsical desires. Anything to the contrary will be an invitation to anarchy. It is the law that what is done officially must be done in accordance to the law.


"Investors are free to do business in Nigeria but they shall abide by the law of this country. Nigeria is not a kangaroo State. Nigeria is not a banana Republic. It is intolerance and extremely dangerous for any branch of the Executive to create a posture it may not obey certain orders of the court. That is tantamount to Executive recklessness which will lead to lawlessness," he said.


The judge declared that "the increment in electricity tariff which took effect after the institution of this action and while a restraining order is subsisting is hereby declared illegal and same is hereby set aside.


He also directed NERC to reverse to the status quo while restraining it from further increasing electricity tariff.


Justice Idris also awarded the sum of N50,000 in favour of the plaintiff.


It would be recalled that the human right lawyer in the substantive suit, seek an order restraining NERC from implementing any upward review of electricity tariff without a meaningful and significant improvement in power supply at least for 18 hours in a day in most communities in Nigeria.


He also wants an order restraining NERC from foisting compulsory service charge on pre-paid meters not until "the meters are designed to read charges per second of consumption and not a flat rate of service not rendered or power not used