A Federal High Court in Lagos has dismissed a lawsuit filed by the Manufacturers Association of Nigeria (MAN) contesting the implementation of the Band A electricity tariff review by the Abuja Electricity Distribution Company (AEDC) and eleven other distribution companies.
The judgment was delivered on Monday, as confirmed by a statement from the Nigerian Electricity Regulatory Commission (NERC) on Thursday.
The court ruled that MAN’s case was an abuse of the court process, describing it as premature and failing to adhere to Section 51 of the Electricity Act 2023. The court noted that MAN had not exhausted the required dispute resolution mechanisms before approaching the judiciary.
The ruling emphasized that MAN’s lawsuit disclosed no reasonable cause of action, as it had not followed the proper legal procedures. Consequently, the court struck out the case, stating that it was not initiated in accordance with due process.
MAN had challenged the minor review of electricity tariffs by the NERC, arguing that due process was not followed when AEDC and the other companies applied for the tariff review on July 31, 2023.
The association claimed that regulatory requirements were ignored prior to the issuance of the Supplementary Order on April 3, 2024, and the revised rates effective May 6, 2024. Additionally, they argued that the tariff increase unfairly targeted Band A customers while excluding other consumer bands, which they deemed discriminatory.
In response, NERC contended that MAN’s lawsuit was an abuse of court processes, asserting it was filed hastily without adhering to the necessary legal protocols.
Band A customers, categorized as premium users without government subsidies, currently face tariffs of N209.50 per kilowatt-hour. This increase has reportedly tripled their electricity costs, significantly affecting production expenses.
