Court voids, reverses electricity tariff hike

• NLC lauds ruling

Nigerians won a major battle yesterday against darkness.

A Federal High Court in Lagos declared the upward review of tariff by the National Electricity Regulation Commission (NERC) illegal and directed a reversal to the status quo.

The trial judge, Mohammed Idris, also restrained the agency from further increasing the tariff except in strict compliance with provisions of the Electricity Power Sector Reform Act 2004 (EPSRA).

In the landmark judgment, Justice Idris awarded N50,000 cost against the defendants in favour of the plaintiff.

A lawyer and rights activist, Mr. Toluwani Adebiyi, had filed the suit, challenging the hike in electricity tariff.

The plaintiff, in the substantive suit had sought an order restraining NERC from implementing any upward review of tariff without a significant improvement in power supply.

He also prayed for an order restraining NERC from foisting compulsory service levy on pre-paid meters, until they are designed to read charges per second of consumption‎.

The Nigeria Labour Congress (NLC) President Ayuba Wabba, in a statement in Abuja, described the verdict as ‘courageous.’

Idris had on May 28, 2015, directed NERC in an interim injunction to suspend all actions relating to any increment in tariff pending the determination of the suit, but the commission went ahead and effected the review on July 1, 2015.

The judge said: “The upward increment in tariff was hasty and procedurally ultra vires. The review was done in a breach of existing order. This again was hasty, reckless and irresponsible. The court has the inherent jurisdiction to undo what has been done by a party in self-help.

“The increment in tariff by the 1st defendant while parties are before the court and there is a subsisting order for status quo is hereby declared illegal.

“The 1st defendant is hereby directed to reverse to status quo. The 1st defendant is further restrained from increasing the electricity tariff except in strict compliance of the provisions EPSRA and the procedures stipulated in section 76 of the EPSRA. N50,000 cost is awarded against the defendants in favour of the plaintiff. That is the judgment of the court.”

The judge added: “Let me say a word to the investing public. Investors are free to do business in Nigeria but they shall abide by the laws of this country. Nigeria is not a kangaroo state. Nigeria is not a banana country. So long as investments are carried out within the ambits of the laws of this country, the courts have no business to intervene.”

The judge also reprimanded the executive and cautioned against recklessness.

His words: “It is intolerable and extremely dangerous for any branch of the executive to embark on actions indicating that it may choose not to obey the orders of the courts.

“That is tantamount to executive recklessness which may lead to lawlessness. Let me warn that no matter how high or low you may be, the law stands above you. Lawlessness, arbitrariness and executive recklessness in exercise of powers conferred by law will never be condoned.”

On his part, Wabba said: “We at the NLC wish to state that this is a courageous and judicial judgment deserving of commendation. We also consider it a victory for the ordinary Nigerian who has been crushed by exploitative bills.

‘‘Similarly, we urge NERC and Discos to obey the judgment and revert to the old rates without further delay.”

The NLC demanded that the NERC and DISCOs observe all the conditions precedent as contained in the sales agreement before any increase could be made.