Court Declares Hike in Electricity Tariff Illegal

• Reps oppose 100% increase

From Kemi Yesufu and Magnus Eze, Abuja

THE House of Representa­tives, yesterday, opposed al­leged plans to increase electricity tariff by 100 percent by distribution companies also known as DISCOs.

The House also called on the Federal Government not to ap­prove any plan that would lead an increase in electricity tariff in any part of the country.

This followed the adoption of a motion brought under matters of urgent public im­portance by Aliyu Madaki.

In the motion, Madaki said the plan by the Discos to in­crease tariff from N24 to N50 per kilowatt for residential consumers would further com­pound hardship in the country.

In his contribution, Major­ity Leader, Femi Gbajabiamila said there was need to review sale of DISCOSs to private in­dividuals and added that the companies lack financial and infrastructural capacity to de­liver quality service.

In his ruling, Speaker Yaku­bu Dogara referred the matter to an Ad Hoc committee to investigate the sale of power assets.

The committee was also man­dated to investigate the rationale behind the last increase in elec­tricity tariff by Discos commen­surate with their investment in the power sector.

In a swift reaction, the Nige­rian Electricity Regulatory Com­mission (NERC) said that it has not received any request for 100 per cent tariff increase.

A statement of its Head, Me­dia Unit, Michael Faloseyi, said the Nigerian Electricity Sup­ply Industry (NESI) said that it was not contemplating any tariff increase as none of the industry operators is pressing for 100 per cent increase in electricity tariff.

“The commission, as well as the industry, appreciates the state of the economy, level of power generation and how Nigerians are coping and would, therefore, not make any decision that could further aggravate challenges faced by the power sector and the econ­omy.”

Meanwhile, the Federal High Court, Ikoyi, Lagos, has declared the 45 per cent tariff increase by NERC as il­legal and has directed its im­mediate reversal.

The court said yesterday­that implementation of the huge increase constitutes a violation of its interim or­der.

The court awarded N50, 000 cost against NERC.

The Nigeria Labour Con­gress (NLC), which opposed the price hike described the ruling as “courageous and deserving of commenda­tion.

“We also consider it vic­tory for the ordinary Nige­rian who has been crushed by exploitative bills,” a state­ment by NLC’s President, Ayuba Wabba, said.

The labour congress urged NERC and DISCOs to obey the judgement and revert to the old rates without further delay.

Source: Sun news