The Federal High Court Ikoyi, in a landmark judgement has declared the 45 per cent tariff increase by the Nigeria Electricity Regulatory Commission (NERC) as illegal and should be reversed immediately.
The court held that the implementation of the 45 per cent increase constitutes a violation of its interim order.
The court awarded N50,000 cost against NERC.
Reacting to the judgement, Labour leader Comrade Ayuba Wabba described it as courageous.
He said the Nigeria Labour Congress (NLC) commended the court over the judgment.
Wabba said: ‘We … consider it (the judgment) a victory for the ordinary Nigerian who has been crushed by exploitative bills.
“Similarly, we urge NERC and DISCOs to obey the judgement and revert to the old rates without further delay.
“We demand that the NERC and DISCOs observe all the conditions precedent as contained in the sales agreement before any increase be made.
“We call that the joint stakeholders on increment on Electricity Tariff led by the Nigeria Labour Congress in their Communiqué issued in Lagos and dated January 29, 2016 had declared as follows:
“The increase is illegal, unfair, unjustifiable and a further exploitation of the already exploited Nigerians;
“The due process in the extant laws for such an increment was not followed in consonance with Section 76 of the Power Sector Reform Act, 2005;
“There has been no significant improvement in service delivery coupled with the fact that most consumers are not metered in accordance with the signed Privatization Memorandum (MoU) of November 21, 2013 which stipulates that within 18 months gestation period, all consumers are to be metered;
“There is a subsisting court order dated May 28. 2015 by Honourable Justice Mohammed Idris of the Federal High Court, Ikoyi, Lagos, in the case of Toluwani Yemi-Adebiyi versus NERC & Ors, that there shall be no increment until the determination of the substantive suit;
“The increment at this time negates the present biting prevailing economic recession vis-a-vis an attempt to further impoverish the the poor masses.”
He added that accordingly, the Stake Holders demanded an “immediate halt of this morbid and exploitative intention” with a warning that an observance in the breach would attract a response such as the mobilization of all Nigerians to resist the new tariff, mass protest or picketing of all DISCOs nationwide, and a directive to all consumers to reject any bill with the new tariff.
He added that, “In an effort to reach an amicable resolution, the Nigeria Labour Congress reached out to all the stakeholders in the sector including NERC, DISCOs, the Minister of Power, and the National Assembly.
“In spite of the resolution of the National Assembly demanding a reversal and restraining order by this same Federal High Court, Ikoyi, NERC and DISCOs went on to enforce the tariff increase, prompting a nation-wide protest on February 8, 2016.
Reps Urge FG To Stop Planned 100% Electricity Tariff Increase
In the same vein, the Federal Government has been urged to stop any plan to increase electricity tariff by 100 per cent in the country following the unanimous adoption of a motion under matters of urgent public importance raised by Rep. Aliyu Madaki (APC-Kano) in the House of Representatives on Wednesday
Madaki who moved the motion, said that the intention of Electricity Distribution Companies (Discos) to increase electricity tariff from N24 to N50 per kilowatt for residential consumers will not favour Nigerians.
Madaki lamented that the erratic power supply by the distribution companies had persisted and affected households and commercial activities across the country.
He pointed out that the planned new tariff would amount to a disobedience of an order of the Federal High Court, Lagos, restraining the National Electricity Regulatory Commission (NERC) from any increase in electricity tariff.
“I recall that in February, 2016, NERC increased electricity tariff by 45 per cent with no corresponding impact on supply; rather, electricity supply has dropped, affecting both households and commercial activities.
“The planned 100 per cent increase in electricity tariff by NERC on the request of distribution companies is illegal and an abuse of court process.
“If the proposed hike in electricity tariff is not put on halt, its multiplier effect on the economy and the social wellbeing of Nigerians cannot be quantified,’’ Madaki said.
Majority Leader of the house, Rep. Femi Gbajabiamila (APC-Lagos), added that necessary to review the sale of Discos to private individuals. Gbajabiamila said that the companies lacked financial and infrastructural capacity to deliver quality services to Nigerians.
“The issue of Discos is the biggest scam; people are paying huge money and Discos are smiling to the banks without commensurate services.
“In other countries, they do not privatise a large life-wire of their economies.
“It is as if somebody powerful somewhere is protecting the Discos; so this house must remain resolute in finding out why the companies disobey resolutions and court orders,’’ he said.
In his ruling, Speaker of the house, Mr Yakubu Dogara, referred the matter to an ad hoc committee to investigate the sale of power assets. The committee was also mandated to investigate the rationale behind the last increase in electricity tariff by the Discos.
