A Federal High Court in Lagos on Wednesday ruled against the National
Electricity Regulation Commission and electricity distribution companies
in a suit opposing the Federal Government’s bid to increase electricity
tariff brought last year.
The suit was filed 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.
In his ruling, 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 lambasted the commission for embarking on the proposed tariff hike despite a court order to maintain status quo.
“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”.
He declared the electricity tariff hike and procedural and rebuked
NERC for he declared as executive recklessness, which he said could only
breed lawlessness.
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