A Federal High Court in Lagos has struck out a case filed by the Manufacturers Association of Nigeria (MAN) challenging the implementation of the Band A electricity tariff review by the Abuja Electricity Distribution Company and 11 other electricity distribution companies.
The judgment was delivered on Monday, according to a statement released by the Nigerian Electricity Regulatory Commission (NERC) on Thursday.
In the judgment, the court was said to have considered all the parties’ arguments and ruled that MAN’s suit was an abuse of the court process, being premature and without due regard to the provisions of Section 51 of the Electricity Act 2023.
The NERC said: “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.”
Persecondnews recalls that MAN challenged the minor review of the electricity tariff conducted by the NERC and filed a lawsuit at the Lagos Judicial Division of the Federal High Court.
Manufacturers classified under the Band A category decried the significant increase in electricity tariffs to N209.50 per kilowatt-hour, stating that this tripling of costs has substantially escalated their production expenses.
The manufacturers 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 July 31, 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 May 6, 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 objected to the lawsuit, arguing that it was prematurely filed and constituted an abuse of court processes, disregarding the necessary legal procedures.
Meanwhile, Band A customers, who receive at least 20 hours of electricity supply daily, are considered premium customers and do not receive government subsidies, enjoying a guaranteed minimum level of service.
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