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| Olorunshogo IPP |
• NLC lauds ruling
Nigerians won a major
battle yesterday against darkness. A Federal High Court in Lagos declared the upward
review of tariff by the National Electricity Regulation Commission (NERC)
illegal and directed a reversal to the status quo.
The
Guardian report continues:
The
trial judge, Mohammed Idris, also restrained the agency from further increasing
the tariff except in strict compliance with provisions of the Electricity Power
Sector Reform Act 2004 (EPSRA).
In
the landmark judgment, Justice Idris awarded ₦50,000 cost against the
defendants in favour of the plaintiff.
A
lawyer and rights activist, Mr. Toluwani Adebiyi, had filed the suit,
challenging the hike in electricity tariff.
The
plaintiff, in the substantive suit had sought an order restraining NERC from
implementing any upward review of tariff without a significant improvement in
power supply.
He
also prayed for an order restraining NERC from foisting compulsory service levy
on pre-paid meters, until they are designed to read charges per second of
consumption.
The
Nigeria Labour Congress (NLC) President Ayuba Wabba, in a statement in Abuja,
described the verdict as ‘courageous.’
Idris
had on May 28, 2015, directed NERC in an interim injunction to suspend all
actions relating to any increment in tariff pending the determination of the
suit, but the commission went ahead and effected the review on July 1, 2015.
The
judge said: “The upward increment in tariff was hasty and procedurally ultra
vires. The review was done in a breach of existing order. This again was hasty,
reckless and irresponsible. The court has the inherent jurisdiction to undo
what has been done by a party in self-help.
“The
increment in tariff by the 1st defendant while parties are before the court and
there is a subsisting order for status quo is hereby declared illegal.
“The
1st defendant is hereby directed to reverse to status quo. The 1st defendant is
further restrained from increasing the electricity tariff except in strict
compliance of the provisions EPSRA and the procedures stipulated in section 76
of the EPSRA. ₦50,000 cost is awarded against the defendants in favour of the
plaintiff. That is the judgment of the court.”
The
judge added: “Let me say a word to the investing public. Investors are free to
do business in Nigeria but they shall abide by the laws of this country.
Nigeria is not a kangaroo state. Nigeria is not a banana country. So long as
investments are carried out within the ambits of the laws of this country, the
courts have no business to intervene.”
The
judge also reprimanded the executive and cautioned against recklessness.
His
words: “It is intolerable and extremely dangerous for any branch of the
executive to embark on actions indicating that it may choose not to obey the
orders of the courts.
“That
is tantamount to executive recklessness which may lead to lawlessness. Let me
warn that no matter how high or low you may be, the law stands above you.
Lawlessness, arbitrariness and executive recklessness in exercise of powers
conferred by law will never be condoned.”
On
his part, Wabba said: “We at the NLC wish to state that this is a courageous
and judicial judgment deserving of commendation. We also consider it a victory
for the ordinary Nigerian who has been crushed by exploitative bills.
‘‘Similarly,
we urge NERC and Discos to obey the judgment and revert to the old rates
without further delay.”
The
NLC demanded that the NERC and DisCOs observe all the conditions precedent as
contained in the sales agreement before any increase could be made.
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