– The Nigerian Electricity Regulatory Commission (NERC) insists it will remain resolute on its decision to increase electricity price
– The electricity commission stated that there is no going back on the 45% hike in electricity tariff
NERC has made it known that its planned 45% hike in electricity price remains sacrosanct. The commission said despite the court ruling against its decision a few days ago. It insists it will the Federal Court judgement that directed it to revert the 45% increase in electricity price across the nation.
The electricity regulatory body made this known to journalists at a press briefing where it issued a statement on Friday, July 15 at its secretariat at Abuja.
The Federal High Court had ruled that the increase in electricity tariff was illegal and instructed that it should be reversed immediately, a judgment which NERC had agreed to comply with. However, the commission changed its position after consulting with its lawyers on Friday, July 15.
Electric metre
The court held that the implementation of the 45% hike constitutes a breach of its interim order and awarded N50,000 cost against NERC.
While speaking at the briefing, the acting chief executive officer of the electricity commission Dr Tony Akah said the commission was aware of the court ruling that declared the electricity price regime that became operational on February 1, 2016 was illegal.
Akah stated: “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 judgement yesterday.”
Akah also expressed optimism that ultimately power consumers as well as institutions will come to a better understanding of the values of the choice made to privatise the power sector.
The acting chief executive officer further said:“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.”
It should be recollected that about two days ago, the Federal High Court Ikoyi, Lagos state announced that the 45% electricity price hike by the federal government of Nigeria should be discontinued.
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