A Federal High Court in Lagos has struck out a suit challenging the hike in electricity tariff, saying it was an abuse of court process.
The case was filed by the Manufacturers Association of Nigeria (MAN) against the eleven distribution companies (DisCos) for increasing electricity tariff for Band A customers.
Ruling on the matter, the court held that the suit was without due regard to the provisions of Section 51 of the Electricity Act 2023.
This was disclosed in a statement on Wednesday by the Nigerian Electricity Regulatory Commission (NERC).
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“The court considered the arguments adduced by the parties and delivered a well-considered judgment on 7 October 2024 by ruling that MAN’s suit was an abuse of court process being premature and without due regard to the provisions of section 51 of the Electricity Act 2023,” NERC said.
“The court also held that MAN’s case disclosed no reasonable cause of action and that by having not exhausted the internal mechanism of resolution of disputes, that the suit was not instituted with due process of law and consequently struck out the case.”
MAN is yet to comment on Monday’s court ruling.
Electricity Tariff
NERC had on April 3 approved an increase in electricity tariff for customers under the Band A classification.
The regulatory agency said customers under the category, who receive 20 hours of electricity supply daily, would begin to pay N225 per kilowatt (kW), starting from April 3.
Electricity Tariff Review: Court Strikes Out MAN’s Case Against AEDC, Others
A Federal High Court sitting in Lagos has struck out a case by the Manufacturers Association of Nigeria (MAN) challenging the implementation of electricity tariff review by the Abuja Electricity… pic.twitter.com/Dser5pcSJK
— NERC Nigeria (@NERCNG) October 10, 2024
Shortly after, the Minister of Power, Adebayo Adelabu, had said the Federal Government could not afford to pay subsidies on power anymore, hence the need for the tariff hike.
The development forced MAN to file the suit marked FHC/L/CS/881/2024 against NERC and other DisCos.
Joined as respondents in the suit were 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).
Other DisCos 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).
