Court voids hike in electricity tariff
Ramon Oladimeji
Ramon Oladimeji
A Federal High Court in Lagos on Wednesday
entered judgment against the National Electricity
Regulation Commission and electricity distribution
companies in a suit opposing the Federal
Government’s bid to increase electricity tariff.
Justice Mohammed Idris declared as null and void
any hike in electricity tariff that did not comply with
the provisions of the Electricity Power Sector
Reform Act 2004.
The judge declared the decision of the defendants
to embark on electricity tariff hike as hasty and
ordered immediate reversal to the status quo.
He also awarded a cost of N50,000 against the
respondents in favour of the plaintiff in the suit.
The suit was filed last year May by a Lagos-based
lawyer, Toluwani Adebiyi, following announcement
of proposed electricity tariff hike by the then
Chairman of NERC, Dr. Sam Amadi.
Adebiyi had urged the court to stop any hike in
electricity tariff until there had been a meaningful
and significant improvement in power supply to at
least 18 hours in a day in most Nigerian
communities.
Justice Idris had since May 28, 2015 restrained
NERC from giving effect to the proposed hike
pending the determination of the suit.
In his final judgment in the suit on Wednesday, the
judge berated the commission for embarking on the
proposed tariff hike despite the court order.
“The upward increment in tariff was hasty and
procedurally ultra vires. The review was done in a
breach of existing order. This again was hasty,
reckless and irresponsible. The court has the
inherent jurisdiction to undo what has been done by
a party in self-help.
“The increment in tariff by the 1st defendant, while
parties were before the court and there was a
subsisting order for status quo, is hereby declared
illegal.
“The 1st defendant is hereby directed to reverse to
status quo. The 1st defendant is further restrained
from increasing the electricity tariff except in strict
compliance of the provisions EPSRA and the
procedures stipulated in section 76 of the EPSRA.
“N50,000 cost is awarded against the defendants in
favour of the plaintiff. That is the judgment of the
court,” the judge held.
He declared the electricity tariff hike and procedural
and rebuked NERC for he declared as executive
recklessness, which he said could only breed
lawlessness.
