Court Nullifies Electricity Tariff Hike

A court in Lagos has declared the 45 percent increment in electricity tariff illegal. The court directed that the Nigeria Electricity Regulatory Commission (NERC) should reverse the increase immediately.
The electricity commission raised the tariffs which took effect from February this year despite a resolution of the National Assembly and a restraining court order against the policy.
NERC in late December 2015, released a new electricity tariff regime that has various rates of increase in energy charges for consumers across the country.
It also announced the removal of fixed power charges for all classes of electricity consumers, stressing that power users would henceforth only pay for what they consume.
Announcing the tariffs increase, NERhad said that from the next billing period, power distribution companies would no longer charge their customers monthly fixed charges that requires electricity consumers to pay an approved amount of money not minding whether electricity is consumed during the billing period.
NERC, while outlining the rates of increase in tariffs for various customer classes in selected locations across the country, said, “For instance, residential customer classification (R2) in Abuja Electricity Distribution Company will no longer pay N702 fixed charge every month. Their energy charge will increase by N9.60.
“Also, residential customers (R2 customers) in Eko and Ikeja Electricity Distribution areas will no longer pay N750 fixed charges. They will be getting N10 and N8 increase respectively in their energy charges.
Similarly, the burden of N800 and N750 fixed charges would be lifted off the shoulders of Kaduna and Benin electricity consumers. These consumers will see an increase of N11.05 and N9.26 respectively in their energy charges,” the commission stated.
However, in nullifying the increment, the Federal High Court that sat in Ikoyi, Lagos, said on Wednesday that the implementation of the huge increase constitutes a violation of its interim order.
The court awarded N50, 000 cost against NERC.

Author: News Editor

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