NERC TARRIFFS: Court Nullifies Electricity Tarriffs Hike For Disregard Of Judicial Order, Procedural Defects

Federal High Court sitting in Lagos on Wednesday nullified the hike in electricity tariffs announced by the Nigerian Electricity Regulatory Commission (NERC) from July 1, 2015 was done in breach of the “status quo” order which it described as the height of irresponsibility.

Delivering a ruling in a suit filed by a human rights lawyer, Mr. Toluwani Yemi Adebiyi, the presiding judge, Justice Mohammed Idris described NERC’s action as procedurally arbitrary, ultra vires and illegal.

Adebiyi had approached the court to challenge the hike in electricity tariffs as announced by NERC last year, contending that increment in tariffs without commensurate increase in power supply was unjustifiable, irresponsible and against public policy and urged the court to set it aside...

The presiding judge, Justice Mohammed Idris after listening to parties in contradistinction to Sections 31, 32 and 76 of the Electricity Power Sector Reform Act (EPSRA) ruled that the actions taken by NERC was arbitrary and baseless as far as the enabling Act is concerned noting that the only provision of the Act complied by the regulatory body in the whole process was the announcement of the tariffs in newspapers.

The judge consequently ordered NERC to immediately revert to status quo ante and restrained the commission from further increasing electricity tariffs except it complies strictly with the relevant provisions of the EPSRA. The sum of N50,000 was awarded in favour of the plaintiff.

“NERC acted outside the powers conferred on it by the Act and failed to follow the prescribed procedure.

“It is clear from the affidavit evidence that the increase in tariffs 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.

“The law is that every person upon whom an order is made by a court of competent jurisdiction must obey it, unless and until the order is discharged and set aside at the appeal.

“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 that it may not obey certain orders of the court. That is tantamount to executive recklessness which will lead to lawlessness.

“Consequently, the increment in electricity tariffs 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.

“NERC is hereby directed to revert to the status quo and the commission is hereby restrained from further increasing electricity tariffs except it complies strictly with the relevant provisions of the EPSRA”, the judge said.

The lawyer in the substantive suit had sought an order restraining NERC from implementing any upward review of electricity tariffs without a meaningful and significant improvement in power supply at least for 18 hours a day in most communities in Nigeria.

In a similar vein, the House of Representatives yesterday also urged the federal government to order a halt in any planned further increase in electricity tariffs, saying it was not in the public interest.