The Federal High Court dismissed the Manufacturers Association of Nigeria’s case against the Band A electricity tariff review by AEDC.
[dropcap]T[/dropcap]he Federal High Court in Lagos dismissed the Manufacturers Association of Nigeria’s case against the Band A electricity tariff review by Abuja Electricity Distribution Company.
A Federal High Court in Lagos has dismissed a case brought by the Manufacturers Association of Nigeria (MAN) regarding the Band A electricity tariff review implemented by the Abuja Electricity Distribution Company (AEDC) and 11 other companies.
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The judgment was delivered on Monday, as confirmed by a statement from the Nigerian Electricity Regulatory Commission (NERC) on Thursday.
The court ruled that MAN’s lawsuit was an abuse of court process, determining it was premature and did not adhere to the provisions outlined in Section 51 of the Electricity Act 2023. It stated, “The suit was not instituted with due process of law, and consequently struck out the case.”
MAN had challenged the recent tariff adjustments made by the NERC, claiming that the necessary regulatory processes were not followed before the AEDC applied for the tariff review on July 31, 2023.
The association sought four reliefs, including the assertion that regulatory requirements were ignored before the issuance of the Supplementary Order on April 3, 2024, and the subsequent reviewed rates on May 6, 2024.
Furthermore, MAN argued that the burden of the tariff increase was disproportionately placed on Band A feeders, which they claimed was discriminatory against those consumers.
The association insisted that the defendants must comply with the administrative procedures required for a legitimate tariff review before implementing the April and May Supplementary Orders.
In its defence, NERC argued that MAN’s case was filed hastily and prematurely, constituting an abuse of court processes. Band A customers, who receive no government subsidies, are expected to receive at least 20 hours of electricity supply daily.
However, with tariffs rising to N209.50 per kilowatt-hour, manufacturers in this category have reported that their electricity costs have tripled, negatively affecting their production expenses.
