Hours after the Nigerian Electricity Regulatory Commission (NERC) said it would abide by the ruling of the court, the regulator Friday said it would not back down on its planned 45 per cent increase in electricity tariff, serving notice that it would file an appeal against the court ruling that ordered it to reverse the 45 per cent increase in electricity tariff. The electricity tariff regime that became operational on February 1, 2016
NERC disclosed this to journalists at a press briefing in Abuja. A Federal High Court in Ikoyi, Lagos had on Wednesday reversed the 45 per cent increase in electricity. The court declared that the hike in tariff was illegal and directed that it should be reversed immediately. NERC initially said it would abide by the court ruling.
But the commission took a different course Friday, saying it would appeal the judgment. The court held that the implementation of the 45 per cent increase constitutes a violation of its interim order and awarded N50,000 cost against NERC.
Acting Chief Executive Officer, NERC, Dr. Tony Akah, said the commission was aware of the judgment.
He said: “The commission respects this decision of the court but we are dissatisfied because it represents the reversal of the commercial foundation upon which contracts for gas, hydro, coal and solar feedstock for the production of electricity have been predicated.
“This judgment, in our view, is a setback to the progress made so far in the electricity sector. Therefore, we challenge this decision. We have instructed our lawyer to appeal. Consequently, the commission has filed for stay of execution and a notice of appeal of the judgment yesterday.
“Therefore we ask investors, as well as customers in the electricity market not to panic as we seek a resolution within the ambit of the established laws.
“The commission remains committed to continuously provide the right regulatory framework that would promote private sector investment in the electricity supply industry and also protect the interests of electricity customers as enshrined in the Electric Power Sector Reform Act 2005,” Akah said.
Akah said the appeal is in public interest as the ultimate goal of the regulator is to engender better services for the consumers and good business climate for the service providers.
