The Federal High Court in Lagos, in a recent judgement dismissed a case filed by the Manufacturers Association of Nigeria (MAN) against the implementation of the Band A electricity tariff review by the Abuja Electricity Distribution Company and 11 others.
The Nigerian Electricity Regulatory Commission (NERC) announced on Thursday that the court’s judgment, delivered on Monday, addressed arguments from all parties involved.
The court found that MAN’s lawsuit constituted an abuse of judicial process, declaring it premature and not in accordance with Section 51 of the Electricity Act of 2023.
According to NERC, the court noted that MAN’s case did not present a reasonable cause of action, as the association had not exhausted existing dispute resolution mechanisms. As a result, the court struck out the case, deeming it improperly instituted.
MAN initially filed the lawsuit in the Lagos Judicial Division of the Federal High Court, disputing NERC’s minor electricity tariff review.
The association sought four key reliefs, arguing that the proper procedures outlined in the Electricity Act were bypassed before the Abuja Electricity Distribution Company (AEDC) and other entities applied to NERC for the tariff adjustment on July 31, 2023.
MAN further contended that regulatory requirements were ignored prior to NERC’s issuance of the Supplementary Order on April 3, 2024, and the revised tariff rate on May 6, 2024.
MAN also claimed that limiting the tariff hike to Band A consumers, while excluding other bands, discriminated against those in Band A.
The association urged that the defendants follow due administrative procedures for tariff adjustments before implementing the April and May supplementary orders.
In response, NERC objected to MAN’s claims, arguing that the case was premature and bypassed due legal processes.
NERC stated that the suit lacked standing, as it had not followed the established legal avenues for dispute resolution.
Band A customers, considered premium customers, do not receive government subsidies but are guaranteed at least 20 hours of electricity daily.
However, with a rate of ₦209.50 per kilowatt-hour, manufacturers in this category have reported a sharp increase in their electricity bills, significantly impacting production costs.
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