By DAYO ADESULU
- Court Rules Against Manufacturers Association of Nigeria in Tariff Implementation Dispute
A Federal High Court in Lagos has dismissed a case brought by the Manufacturers Association of Nigeria (MAN) that challenged the implementation of the Band A electricity tariff review by the Abuja Electricity Distribution Company (AEDC) and eleven other entities. The court’s decision, delivered on Monday, underscores the legal complexities surrounding electricity tariff regulations in Nigeria.
- Judgment Details and Court Findings
In a statement released by the Nigerian Electricity Regulatory Commission (NERC) on Thursday, the court determined that MAN’s lawsuit was an abuse of the court process, deeming it premature and failing to adhere to the provisions outlined in Section 51 of the Electricity Act 2023.
The court noted that MAN had not exhausted the available dispute resolution mechanisms before resorting to legal action, concluding that the case lacked a reasonable cause of action. As a result, the court ruled that the suit was not filed in accordance with legal procedures, leading to its dismissal.
- Background of the Case
The PUNCH reported that MAN had previously challenged the minor review of the electricity tariff conducted by NERC and subsequently filed a lawsuit in the Lagos Judicial Division of the Federal High Court. The manufacturers sought four specific reliefs, asserting that the due process required by the Act was not followed prior to AEDC and others applying to NERC for the tariff review on July 31, 2023.
MAN argued that the regulatory requirements for tariff reviews were overlooked before NERC issued the Supplementary Order on April 3, 2024, and the subsequent revised rates on May 6, 2024. They contended that the imposition of the tariff increase solely on Band A feeders, while excluding other bands, constituted discrimination against those consumers.
- NERC’s Response and Implications for Manufacturers
The NERC objected to the lawsuit, arguing that MAN’s claims represented an abuse of court processes, as the case was filed prematurely and without following the necessary legal protocols. Band A customers, classified as premium consumers without government subsidies, are guaranteed at least 20 hours of electricity supply daily. However, with a tariff of N209.50 per kilowatt-hour, manufacturers within this category reported that their electricity costs have tripled, adversely affecting production expenses.
This ruling highlights the ongoing challenges faced by manufacturers in Nigeria regarding electricity tariffs and the importance of adhering to regulatory procedures in addressing disputes. The decision may also set a precedent for future cases involving tariff implementations and regulatory compliance within the electricity sector.
