MAN’s lawsuit challenging electricity tariff dismissed by court

A Federal High Court in Lagos dismissed a lawsuit filed by the Manufacturers Association of Nigeria (MAN) challenging the Band A electricity tariff review by the Abuja Electricity Distribution Company (AEDC) and 11 other entities.

According to a statement from the Nigerian Electricity Regulatory Commission (NERC) on Thursday, the court considered the arguments from all parties.

It concluded that MAN’s lawsuit was premature and an abuse of the court process, as it did not adhere to the provisions of Section 51 of the Electricity Act 2023.

“The court also held that MAN’s case disclosed no reasonable cause of action as it had not exhausted the dispute resolution mechanism.

“It thus held that the suit was not instituted with due process of law, and consequently struck out the case,” NERC stated.

This came after MAN filed the lawsuit at the Lagos Division of the Federal High Court, challenging a minor tariff review conducted by NERC. MAN sought four key reliefs, including claims that the required procedures under the Electricity Act were not followed before AEDC and other entities applied for the tariff review on July 31, 2023.

The manufacturers argued that regulatory requirements were not met before NERC issued its Supplementary Order on April 3, 2024, and the revised rates on May 6, 2024. They also contended that the tariff increase unfairly targeted Band A consumers, leaving out other categories, which they claimed amounted to discrimination.

MAN further asserted that the defendants failed to follow the necessary administrative procedures before implementing the April and May Supplementary Orders.

NERC opposed the lawsuit, arguing that it was filed prematurely without due process, making it an abuse of the court process.

Band A customers, who are premium users without government subsidies, are guaranteed at least 20 hours of daily electricity supply. However, manufacturers under this category have raised concerns about the N209.50 per kilowatt-hour tariff, stating that it has tripled their electricity costs, negatively affecting production.