Court orders IKEDC, NERC to reverse tariff hike

The Federal High Court in Lagos has issued a restraining order against Ikeja Electricity Distribution Company (IKEDC) Plc and the Nigerian Electricity Regulatory Commission (NERC), prohibiting them from enforcing, managing, or executing the disputed tariff increase outlined in the April 2024 Supplementary Order on Tariff Increase for ‘Bank A’ Feeders.

On Tuesday, the court delivered a ruling that the tariff in question encompasses both the rates published by Ikeja Electric on April 4 and the supplementary tariff increase on ‘Band A’ feeders published on May 6, specifically in relation to Rida National Plastics Limited.

Justice Chukwujeku Aneke issued the interim injunction after considering an ex parte application submitted by Dr. Kemi Pinheiro (SAN), lead counsel to Rida National Plastics, along with F. Giwa Esq and I. Aderibigbe Esq.

The judge ruled that the order subsisted pending IKEDC and NERC’s full compliance with Section 51 of the Electricity Act, 2023 and the hearing and determination of the motion on notice for interlocutory injunction.

Rida National Plastics is the plaintiff/applicant while Ikeja Electric PLC and NERC are the 1st and 2nd defendants/respondent in the suit marked FHC/L/CS/1051/2024.

Justice Aneke also temporarily restrained the 1st & 2nd defendants from imposing the payment of the sum of N20m on the plaintiff, being the balance payable on the purported electricity bill dated May 4, 2024, calculated based on the April 2024 Supplementary Order on Tariff Increase on “Band A” Feeders and/or the May 2024 Supplementary Order On Tariff Increase on “Band A”.

Also, the interim injunction restrained IKEDC and NERC “from intimidating and threatening to disconnect or actually disconnecting” Rida National Plastics’ electricity supply for non-compliance with the purported tariff.

Justice Chukwujeku Aneke adjourned the suit until July 9, 2024, to allow for the hearing of the motion on notice that was filed simultaneously with the ex parte application.