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Electricity Tariff Review: NERC Floors MAN As Court Strikes Out Suit Against AEDC, Others

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…Holds Customer Complaint Resolution Session In Oshogbo

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 Distribution Company PLC and 11 others.

In the judgment on 7 October 2024, the Court considered all the parties’ arguments and ruled 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 disclosed this in its X handle post Thursday. MAN filed the suit marked FHC/L/CS/881/2024 against NERC and other DisCos.

The suit was an aftermath of NERC’s classification of electricity consumers into bands in April 3 with increase in electricity tariff for customers under the A and B for receiving up to 20 hours of power supply per day. They are currently paying at least N225 per kilowatt (kW), since then.

The Court also held that MAN’s case disclosed no reasonable cause of action as it had not exhausted the dispute resolution mechanism. It thus, held that the suit was not instituted with due process of law, and consequently struck out the case.

MAN had challenged the minor review of the electricity tariff by the Nigerian Electricity Regulatory Commission (NERC) and filed a lawsuit at the Lagos Judicial Division of the Federal High Court.

MAN sought four reliefs: that due process stated in the Act for the review was not fulfilled before AEDC and the others applied to NERC for the tariff review on 31 July 2023.

It stated that regulatory requirements for tariff reviews were not followed before NERC issued the Supplementary Order of 3 April 2024 and the subsequently reviewed rate of 6 May 2024.

MAN also held that placing the burden of the tariff increase on only Band “A” feeders and leaving out other bands amounted to discrimination against such consumers.

It then noted that the defendants must comply with administrative procedures for tariff review before rightfully implementing the April and May Supplementary Orders.

NERC had objected to the suit stating that MAN’s case constitutes an abuse of court processes, being hasty and prematurely filed without following due process of the law.

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).

Meanwhile the Nigerian Electricity Regulatory Commission (NERC) is currently on a three-day on-the-spot customer complaints resolution forum in Osogbo, the Osun State capital.

It held a roadshow on Wednesday in collaboration with the National Orientation Agency (NOA) and the Ibadan Electricity Distribution Company (IBEDC).

While its town hall meeting commenced Thursday 10th October, for customer complaint resolution session which lasts till Saturday 12th October.

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