Court Finally Decides on Plan to Increase Electricity Tariff, Gives Order to EKEDC, AEDC, 8 Others

• A Lagos-based high court has issued an interim order that forbids the NERC and ten distribution corporations from increasing tariffs
• This came after the petitioner prayed the court to mandate the DisCos and power regulators to allow the old power pricing to be used
• The tariff increase was required because the FG could no longer afford to give power subsidies, according to the minister of power

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

A high court in Lagos has issued an interim ruling prohibiting the Nigerian Electricity Regulatory Commission (NERC) and ten distribution firms (DisCos) from raising tariffs.

The ex parte order was granted on Monday by the presiding judge, Lewis Allagoa.

Recall that NERC earlier authorised an increase in the electricity cost for consumers classified as Band A - those who receive 20 hours of power every day - on April 3.

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According to the commission, starting on April 3, clients in this category will have to pay N225 per kilowatt (kW).

The minister of power, Adebayo Adelabu, had stated in defence that the federal government could no longer afford to provide power subsidies, which informed the tariff hike.

Stakeholders and organised labour unions, however, demanded reversal of the tariff hike, adding that it was unsustainable.

Court gives verdict on tariff hike

As per the court document obtained by TheCable, the FHC/L/CS/881/2024 complaint was filed with the Manufacturers Association of Nigeria (MAN) as the applicant.

The DisCos, which are the first respondents, include the Abuja Electricity Distribution Company (AEDC), the Ibadan Electricity Distribution Company (IBEDC), the Eko Electricity Distribution Company (EKEDC), the Ikeja Electricity Distribution Company (IKEDC), and the Kaduna Electricity Distribution Company (KAEDC).

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Others are Kano Electricity Distribution Company (KAEDC), 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).

The paper states that the NERC is the second respondent in the lawsuit.

The petitioner prayed that the DisCos and the authority overseeing electricity use permit the continued use of the previous electricity pricing.

The court issued an order restraining the respondents from taking additional actions, such as cutting off the power supply, until the motion in this case was decided after carefully reviewing the application and the applicant's submissions.

The court said:

“That the order is without prejudice to the obligation of the plaintiff from paying their electricity bill at the old rate,”

The hearing on the subject was therefore postponed until June 24.

Moses Ajibola, a resident of Ajegunle, told Legit.ng that it would be unfair of the government to implemente the hike, considering that Nigerians are already going through a lot.

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He said:

"These people need to be considerate to Nigerians. we are struggling with high cost of transport and the alrming increase in food price cost already. Now is not the time for any more hike in electricity cost."

FG gives orders to reduce electricity supply

Legit.ng earlier reported that NERC announced plans to enhance power supply to domestic consumers following its orders directing the System Operator (SO) to cap supplies to international customers by 6% of domestic supplies.

The affected countries include Togo, Benin Republic and the Niger Republic.

The development comes amid a high level of indebtedness and non-remittance of electricity bills supplied to the countries over the years.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng