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Court Halts Electricity Tariff Hike by DisCos and NERC

A high court in Lagos has issued an interim order preventing ten electricity distribution companies (DisCos) and the Nigerian Electricity Regulatory Commission (NERC) from increasing tariffs.

The Manufacturers Association of Nigeria (MAN) is the applicant in the suit, marked FHC/L/CS/881/2024, according to court documents.

Respondents in the Case
The first respondents include:

  • Abuja Electricity Distribution Company (AEDC)
  • Ibadan Electricity Distribution Company (IBEDC)
  • Eko Electricity Distribution Company (EKEDC)
  • Ikeja Electricity Distribution Company (IKEDC)
  • Kaduna Electricity Distribution Company (KAEDC)
  • Kano Electricity Distribution Company (KEDC)
  • Jos Electricity Distribution Company (JEDC)
  • Benin Electricity Distribution Company (BEDC)
  • Enugu Electricity Distribution Company (EEDC)
  • Port Harcourt Electricity Distribution Company (PHEDC)
  • Yola Electricity Distribution Company (YEDC)
  • NERC is the second respondent in the suit.

Court’s Interim Order

The court ordered the respondents to maintain the current electricity tariff and refrain from any actions, including disconnecting power supply, pending the determination of the motion in the matter.

“The order is without prejudice to the obligation of the plaintiff to pay their electricity bill at the old rate,” the court stated.

In April, NERC approved an increase in electricity tariffs for customers under the band A classification, announcing that customers receiving 20 hours of electricity daily would begin paying N225 per kilowatt-hour (kWh). Adebayo Adelabu, the Minister of Power, defended the decision, citing the federal government’s inability to continue subsidizing power.

However, stakeholders and organized labor unions have called for a reversal of the hike, arguing that it is unsustainable and will deepen poverty in Nigeria.

The case has been adjourned to Monday, June 24, for a hearing.