A Federal High Court sitting in Lagos on Wednesday declared null and void the recent hike in electricity tariff in Nigeria by electricity distribution companies and backed by the Federal Government.
Justice Mohammed Idris, in his ruling, explained that any hike that did not comply with the provisions of the Electricity Power Sector Reform Act 2004 cannot stand.
He delivered this judgement following a suit filed by a Lagos-based lawyer, Toluwani Adebiyi, following announcement of proposed electricity tariff hike by the then Chairman of NERC, Sam Amadi.
Justice Idris ruled that the decision of the defendants to embark on electricity tariff hike was hasty and ordered immediate reversal to the status quo.
The judge then awarded a cost of N50,000 against the respondents in favour of the plaintiff in the suit.
When Adebiyi filed his case in May 2015, he urged the court to stop any hike in electricity tariff until there had been a meaningful and significant improvement in power supply to at least 18 hours in a day in most Nigerian communities.
On May 28, 2015, Justice Idris restrained NERC from giving effect to the proposed hike pending the determination of the suit, but the agency went against this.
“The upward increment in tariff was hasty and procedurally ultra vires. The review was done in a breach of existing order. This again was hasty, reckless and irresponsible. The court has the inherent jurisdiction to undo what has been done by a party in self-help.
“The increment in tariff by the 1st defendant, while parties were before the court and there was a subsisting order for status quo, is hereby declared illegal.
“The 1st defendant is hereby directed to reverse to status quo. The 1st defendant is further restrained from increasing the electricity tariff except in strict compliance of the provisions EPSRA and the procedures stipulated in section 76 of the EPSRA,” Justice Idris held.
