Customer Drags NERC to Court
A recent policy by the Nigerian Electricity Regulatory Commission (NERC) classifying electricity consumers into bands A to E based on their location has hit a legal speed bump. Festus Onifade, a customer of the Abuja Electricity Distribution Company (AEDC), has filed a suit before the Federal High Court in Abuja, challenging the legality of the classification and the associated tariff hike for higher bands.
In the suit marked FHC/ABJ/CS/492/2024, Onifade, a lawyer, argued that the consumer classification policy violates his fundamental rights and those of other electricity customers. He urged the court to declare the policy unconstitutional, discriminatory, unlawful, and null and void.
At the heart of Onifade’s contention is the perceived discrimination resulting from the classification system. Under NERC’s Multi-Year Tariff Order 2024, customers in highbrow areas like Maitama, Asokoro, and Aso Villa were classified as Band A and entitled to receive a minimum of 20 hours of daily power supply. However, customers in less privileged areas, including Onifade, were consigned to lower bands, such as Band B (16 hours), Band C (12 hours and above), Band D (8 hours and above), and Band E (6 hours and above).
Onifade contended that this classification based on location amounts to discrimination against customers not residing in affluent areas, effectively denying them equal access to reliable electricity supply.
The disgruntled customer is seeking several reliefs from the court, including an order restraining NERC, AEDC, and the Attorney-General of the Federation from continuing with the implementation of the consumer classification and tariff hike policies pending the determination of the substantive suit.
Additionally, Onifade is requesting a perpetual restraining order against the defendants, prohibiting them from giving effect to the Multi-Year Tariff Order 2024 and the associated downgrading of customers into bands A to E based on their location.
The legal challenge against NERC’s policy highlights the contentious nature of electricity tariff reforms in Nigeria. While the regulator aims to incentivize improved service delivery through the classification system, concerns about equity and affordability for consumers in less affluent areas have been raised.
As the case progresses, stakeholders in the power sector and consumer rights advocates will closely monitor the court’s decision. The outcome could have far-reaching implications for the implementation of NERC’s tariff policies and the broader issue of ensuring fair and non-discriminatory access to electricity supply across Nigeria.Copy
Reference
Customer sues NERC, AGF over electricity tariff hike, classification published in Punch By Solomon Odeniyi