Five electricity generating companies have dragged National Electricity Regulatory Commission, NERC, before a Federal High Court in Abuja over plans to review the current tariffs they are charging their customers.
The plaintiffs, Egbin Power Plc, Geregu Power Plc, Transcorp Power Ltd, Kainji Hydro Electric Plc, and Jebba Hydro Electric plc, are praying the court to stop NERC from taking steps towards reviewing the tariffs.
Also charged as co-respondents in the matter are the Senate and the Attorney-General of the Federation.
The plaintiffs initiated the suit on behalf of themselves and other GENCOs operating in Nigeria.
They are specifically praying the court for an order restraining NERC from reversing the Multi-Year Tariff Order 2015, whether of its own accord or under pressure from the Nigerian Senate.
The plaintiffs argued that section 76 of the Electric Power Sector Reforms Act 2005, guaranteed that electricity tariffs would be reflective of the costs (costs-reflective tariff) incurred in the generation and distribution of electricity.
They argued that since the privatisation of the Power Holding Company and the take-over of the power industry by private investors, electricity tariffs fixed by the NERC had never been cost-reflective.
The plaintiffs are seeking, “a declaration that upon a proper interpretation of Section 76 of the Electric Power Sector Reform Act 2005, including the Regulations made there under, the 1st Defendant (whether of its own accord or under the pressure from the 2ndand/or 3rd Defendants) cannot lawfully amend, revise, withdraw or in any manner whatsoever tamper with the Multi Year Tariff Order 2015 which came into effect on 1stFebruary 2016 without complying with the procedures stipulated in the Electric Power Sector Reform Act 2005 and Regulations made there under, particularly the Regulations on the Procedure for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry issued on 24th December 2014.
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