A Federal High Court in Lagos has dismissed a lawsuit filed by the Manufacturers Association of Nigeria, challenging the implementation of the Band A electricity tariff review by the Abuja Electricity Distribution Company and 11 others.
According to The PUNCH, the Nigerian Electricity Regulatory Commission on Thursday, revealed that the judgment was delivered on Monday.
The court found that the suit lacked merit and was filed prematurely, failing to adhere to Section 51 of the Electricity Act 2023.
“The court considered all the arguments presented by both parties and concluded that MAN’s suit was an abuse of court processes,” the NERC statement read.
“It disclosed no reasonable cause of action as MAN had not exhausted the required dispute resolution mechanisms before approaching the court.”
NERC added that the court ruled the suit was not brought in accordance with due legal processes, leading to its dismissal.
The case stemmed from MAN’s challenge to a minor tariff review initiated by NERC, which took effect on May 6, 2024.
The association argued that regulatory procedures were not followed by the AEDC and other electricity providers when they applied for the tariff review.
MAN further contended that placing the increased costs solely on Band A customers, which includes manufacturers, was discriminatory.
“By placing the burden of the tariff increase solely on Band A consumers, which includes large manufacturers, the defendants have unfairly singled out this group, leaving other bands unaffected,” MAN argued in its filing.
NERC countered by objecting to the suit, stating that MAN’s case was premature and did not comply with legal requirements for dispute resolution.
Band A customers, categorized as premium customers without government subsidies, are guaranteed at least 20 hours of daily electricity supply.
However, the hike to N209.50 per kilowatt-hour has significantly impacted production costs for manufacturers, who have seen their electricity costs triple under the new rates.
