A Federal High Court in Lagos has dismissed a lawsuit filed by the Manufacturers Association of Nigeria, MAN, contesting the Band A electricity tariff review implemented by the Abuja Electricity Distribution Company, AEDC, and 11 others.
In a statement released on Thursday, the Nigerian Electricity Regulatory Commission, NERC, confirmed that the judgment was delivered on Monday. NERC disclosed that the court examined the arguments presented by all parties and ruled that MAN’s lawsuit was premature and an abuse of court process. The court highlighted that the manufacturers had not adhered to the provisions of Section 51 of the Electricity Act 2023.
The ruling emphasized that the case lacked a reasonable cause of action because MAN had failed to exhaust the dispute resolution mechanism provided in the Act before initiating the lawsuit. Consequently, the court deemed the suit as not being in line with due legal process and struck it out.
MAN initially filed the lawsuit in the Lagos Judicial Division of the Federal High Court, challenging the NERC’s decision to conduct a minor review of electricity tariffs. The manufacturers sought four reliefs, arguing that AEDC and other electricity distribution companies had not followed due process before applying for a tariff review on July 31, 2023. Additionally, MAN contended that NERC failed to adhere to regulatory procedures before issuing a Supplementary Order on April 3, 2024, and implementing a revised tariff on May 6, 2024.
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The manufacturers also raised concerns about the tariff increase applying only to Band A feeders, arguing that this singled out premium customers unfairly while excluding other bands. MAN claimed this constituted discrimination against Band A consumers, which includes manufacturers, and called for compliance with the administrative procedures for tariff reviews.
NERC, however, objected to the lawsuit, asserting that MAN had filed the case prematurely without exhausting the legal processes required by law. NERC maintained that the suit was an abuse of court process.
Band A customers, who are classified as premium customers, receive no government subsidies but are guaranteed a minimum of 20 hours of electricity supply per day. Currently, Band A customers pay N209.50 per kilowatt-hour. Manufacturers falling within this category have argued that the tripling of tariffs has significantly increased their production costs, making operations more challenging.
The court’s ruling puts an end to MAN’s legal challenge, reaffirming the need for proper legal and administrative processes before contesting regulatory decisions.
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