News Flash:NERC insists on electricity tariff increase, appeals court judgement

Firstclass Newsline gathered that the Nigerian Electricity Regulatory
Commission has insisted it would retain its planned 45 per cent
increase in electricity tariff as it said it would file an appeal
against the court ruling that mandated it to reverse the 45 per cent
increase in electricity tariff across the country. This was made
available to newsmen at a press briefing issued Friday, at its
headquarters in Abuja.
Recall that a Federal High Court in Ikoyi, Lagos had on Wednesday
reversed the 45 per cent increase in electricity. The court had
declared that the hike in tariff was illegal and directed that it
should be reversed immediately, a judgment which NERC had agreed to
comply with. However, the commission changed its stance after
consulting with its lawyers on Friday.
The court held that the implementation of the 45 per cent increase
constitutes a violation of its interim order and awarded N50,000 cost
against NERC.
Speaking at the briefing, the Acting Chief Executive Officer, NERC,
Dr. Tony Akah, said the commission was aware of the judgement which
declared the electricity tariff regime that became operational on
February 1, 2016 as illegal.
He 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 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."
He also expressed hopes that ultimately power consumers as well as
institutions would come to a better understanding of the values of the
choice made to privatise the power sector.
Akah 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.