Court Blocks DisCos, NERC’s Attempt to Raise Electricity Tariffs
In a legal victory for Nigerian consumers, the Federal High Court has issued an injunction preventing Distribution Companies (DisCos) and the Nigerian Electricity Regulatory Commission (NERC) from implementing proposed increases in electricity tariffs.
Judge Lewis Allagoa granted the ex parte order on Monday, June 10. According to court documents, the Manufacturers Association of Nigeria (MAN) is the applicant in the suit, which is marked FHC/L/CS/881/2024.
The court documents revealed that the Manufacturers Association of Nigeria (MAN) initiated the lawsuit, identified as FHC/L/CS/881/2024.
DisCos, which are the first respondents include the Abuja Electricity Distribution Company (AEDC), Ibadan Electricity Distribution Company (IBEDC), Eko Electricity Distribution Company (EKEDC), Ikeja Electricity Distribution Company (IKEDC), and Kaduna Electricity Distribution Company (KAEDC).
Additionally, the Kano Electricity Distribution Company (KEDC), Jos Electricity Distribution Company (JEDC), Benin Electricity Distribution Company (BEDC), Enugu Electricity Distribution Company (EEDC), Port Harcourt Electricity Distribution Company (PHEDC), and Yola Electricity Distribution Company (YEDC) are also among the respondents.
Other respondents include the Kano, Jos, Benin, Enugu, Port Harcourt, and Yola Electricity Distribution Companies (KEDC, JEDC, BEDC, EEDC, PHEDC, and YEDC, respectively).
The court document states that the Nigerian Electricity Regulatory Commission (NERC) is the second respondent in the suit.
The Nigerian Electricity Regulatory Commission (NERC) is listed as the second respondent in the lawsuit.
Applicant requested that DisCos and the electricity regulatory body maintain the current electricity tariff.
The applicant, MAN, requested that the DisCos and NERC keep the existing electricity tariff unchanged.
After carefully considering the application and the applicant’s submissions, the court ordered that the respondents be restrained from taking any further steps, including disconnecting power supply, pending the determination of the motion in this matter.
After reviewing the application and the arguments presented by MAN, the court ordered the respondents to refrain from any actions, including cutting off the power supply, until the court reaches a decision on the motion.
“That the order is without prejudice to the obligation of the plaintiff from paying their electricity bill at the old rate,” the court said.
The commission announced that in April, customers in the category receiving 20 hours of electricity supply daily would begin paying N225 per kilowatt (kW).
In defense of this decision, Adebayo Adelabu, the Minister of Power, stated that the federal government could no longer afford to pay subsidies on power, necessitating the tariff hike.
However, stakeholders and organised labor unions have called for a reversal of the hike, arguing that it is unsustainable.
As a result, the matter has been adjourned to Monday, June 24 for a hearing. In April, the NERC approved an increase in electricity tariffs for customers under the band A classification.
