NERC makes U-turn, appeals court ruling on electricity tariff

The Nigerian Electricity Regulatory Commission has directed its lawyers to

file an appeal against the court ruling that mandated it to reverse the 45
per cent increase in electricity tariff across the country.
NERC had earlier stated that it would uphold the decision of the court, but
the commission changed its stance after consulting with its lawyers, as
announced on Friday during a press briefing that was held at its
headquarters in Abuja.
A Federal High Court in Ikoyi, Lagos had on Wednesday reversed the 45 per
cent increase of electricity tariff by the NERC and the Federal Government
in a landmark judgment. The court declared the hike in tariff as illegal and
directed that it should be reversed immediately.
The court held that the implementation of the 45 per cent increase
constitutes a violation of its interim order and awarded N50,000 cost
against NERC.
Speaking at the briefing, the Acting Chief Executive Officer, NERC, Dr. Tony
Akah, said the commission was aware of the judgement which declared the
electricity tariff regime that became operational on February 1, 2016 as
illegal.
He said, “The commission respects this decision of the court but we are
dissatisfied because it represents the reversal of the commercial foundation
upon which contracts for gas, hydro, coal and solar feedstock for the
production of electricity have been predicated.
“This judgment, in our view, is a setback to the progress made so far in the
electricity sector. Therefore, we challenge this decision. We have instructed
our lawyer to appeal. Consequently, the commission has filed for stay of
execution and a notice of appeal of the judgement yesterday.”
Akah stated that private power production and distribution was relatively
new in Nigeria and that development such as the court ruling must be seen
in that context as the laws begin to face judicial tests of interpretations.
The NERC boss expressed hope that ultimately power consumers as well as
institutions would come to a better understanding of the values of the
choice made to privatise the power sector.
Akah said, “Therefore we ask investors, as well as customers in the
electricity market not to panic as we seek a resolution within the ambit of
the established laws.
“The commission remains committed to continuously provide the right
regulatory framework that would promote private sector investment in the
electricity supply industry and also protect the interests of electricity
customers as enshrined in the Electric Power Sector Reform Act
2005.”Punch