AGF, NERC Sued By A Customer Over Classification, Hikes In Electricity Tariffs

THE Multi-Year Tariff Order 2024 (ٜΥTO 2024), issued by the Nigerian Electricity Regulatory Commission (NERC), is being challenged by Festus Onifade, a customer of the Abuja Electricity Distribution Company (AEDC), in a lawsuit filed in the Federal High Court.

With regard to electricity consumers, this tariff order establishes a geographic-based classification system (Bands A to E) together with matching tariff rates and power supply hours.

Remember that on April 3, NERC announced a change to the electricity prices that would only apply to those consumers who received at least 20 hours of power every day.

The tariff charge for Band A users was notably raised from N68 per kilowatt-hour to N255/KWh, a considerable increase.

Following this tariff change, NERC ordered AEDC and the other 11 Distribution Companies to provide names of Band A customers who were eligible for the upgraded power supply.

Festus Onifade, in his capacity as an attorney, is requesting an order to stop the tariff hike and classification in the litigation designated FHC/ABJ/CS/492/2024. He claims that the classification violates his and other consumers' fundamental rights and that it is unlawful.

Among Onifade's requests to the court is a declaration that the classification of customers into Bands A through E violates fundamental rights, especially the right against discrimination, as guaranteed by the Federal Republic of Nigeria 1999 Constitution and the African Charter on Human and Peoples' Rights.

In addition, he asked the court to issue an injunction prohibiting location-based classification policies and related tariff hikes by NERC, AEDC, and the Federation's Attorney General until the substantive matter is heard and decided.

Also, he requested a permanent injunction to stop the defendants from enacting MYTO 2024 and any associated tariff changes.

Against customers in less affluent locations, including himself, Onifade claims in his filed affidavit with the court that the classification discriminates against them by restricting their access to energy supplies in comparison to those who live in more affluent communities.

He claims, “By virtue of this classification, NERC has categorized customers residing in highbrow urban areas such as Maitama, Asokoro, and Aso Villa into Band A, affording them electricity supply for 20 hours and above. Meanwhile, customers in less privileged areas are relegated to Bands B, C, D, and E, resulting in lower and limited electricity supply for these categories.”

There isn't yet a date set for the court to hear this case.

However, the lawsuit poses a serious legal challenge to NERC's rate policy and highlights crucial issues regarding fair access to energy services for Nigerians of all socioeconomic backgrounds.