Manufacturers secure court order restraining DisCos, NERC from increasing electricity tariff

A high court in Lagos has issued an interim order restraining 10 electricity distribution companies (DisCos) and the Nigerian Electricity Regulatory Commission  (NERC) from increasing tariff.

Lewis Allagoa, the presiding judge, granted the ex parte order on Monday.

In the court document seen by TheCable, the Manufacturers Association of Nigeria (MAN) was the applicant in the suit marked FHC/L/CS/881/2024.

The DisCos, which are the first respondents include the Abuja Electricity Distribution Company (AEDC), the Ibadan Electricity Distribution Company (IBEDC), the Eko Electricity Distribution Company (EKEDC), the Ikeja Electricity Distribution Company (IKEDC), and the Kaduna Electricity Distribution Company (KAEDC).

Others are Kano Electricity Distribution Company (KAEDC), Jos Electricity Distribution Company (JEDC), Benin Electricity Distribution Company (BEDC), Enugu Electricity Distribution Company (EEDC), Port Harcourt Electricity Distribution Company (PHEDC), and Yola Electricity Distribution Company (YEDC).

The NERC is the second respondent in the suit, according to the document.

The applicant prayed that the DisCos and the electricity regulatory body should allow the old electricity tariff to be used.

After careful consideration of the application and submissions of the applicant, the court ordered that the respondents be restrained from taking any further steps, including the disconnection of power supply, pending the determination of the motion in this matter.

“That the order is without prejudice to the obligation of the plaintiff from paying their electricity bill at the old rate,” the court said.

The matter was, therefore, adjourned to June 24 for hearing.

On April 3, the NERC approved an increase in electricity tariff for customers under the Band A classification.

The commission said customers under the category, who receive 20 hours of electricity supply daily, would begin to pay N225 per kilowatt (kW), starting from April 3.

In defence, Adebayo Adelabu, minister of power, had said the federal government could not afford to pay subsidies on power anymore, hence the need for the tariff hike.

However, stakeholders as well as organised labour unions have called for a reversal of the hike saying it is unsustainable.