NERC Appeals 45% Tariff Hike’s Court Ruling

The Nigerian Electricity
Regulatory Commission (NERC) has filed a motion against the Wednesday ruling by an Ikoyi Federal High Court in Lagos which declared as unlawful, the 45 percent hike in electricity tariff in the country.
At a press briefing organised by NERC at its headquarters in Abuja, Friday, the Acting Chief Executive Officer of the Commission, Dr. Tony Akah, said NERC respects the decision of the court but was dissatisfied.
Akah said, “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 judgement, in our view, is a set back to the progress made so far in the electricity sector. Therefore, we challenge this decision.
“We have instructed our lawyers to appeal. Consequently, the Commission has filed for a stay of execution and a notice of appeal of the judgement yesterday, being Thursday”.
He noted that the private power production and distribution was relatively new in the country and that the court ruling must be seen in such context as the laws begin to face judicial tests of interpretations.
Akah expressed confidence that ultimately, power consumers and institutions would come to a better understanding of the values of the choice of privatizing the sector.
He urged investors and electricity consumers in the electricity market not to panic over the judgement as the commission would seek a resolution within the ambit of established laws.
He said: “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.”