BREAKING NEWS, Power
–
Association of National Electricity Distributors warns that power supply in Nigeria will worsen if the new electricity tariff is reversed
| By Anayo Ezugwu | Aug 1, 2016 @ 01:00 GMT |
THE Association of National Electricity Distributors, ANED, an umbrella body for the electricity distributors, Discos, is warning power consumers in Nigeria that supply will worsen if the court reverses the increase in electricity tariff. Should this happen, the ANED warned Nigerians to be ready to return to the use of generators as a major source of electricity.
Sunday Oduntan, executive director, ANED, said, “If the courts insist on the reversal, then the system will collapse; but we are not pulling out. The system will collapse on everybody’s head and, of course, it will affect everyone. What we are talking about here is how the sector can survive; how we can bring in liquidity into the sector and make sure that the product is appropriately priced.
“Nigerians have a choice to make; if we want to continue to use generator, then let’s go ahead to oppose the tariff and, of course, those who import generators will be happy. I’m sure those whom I call the generator mafias will be very happy with this development,” he said.
According to him, the Discos collect tariffs not just for themselves alone but on behalf of the whole value chain. “It might interest you to know that only 24 per cent of the tariffs get to the Discos. Secondly, it is in our interest to have power from the grid because the average tariff across the board is N24 per kilowatt-hour. Now, the average rate for generator is N50 per kilowatt-hour and that is double the amount from the grid.
“This means that it is still cheaper to get power from the national grid as against getting it from a generator. Also, the quality of power from the national grid is far better than the frustration from generators and we have tested and confirmed this. So, as we are appealing to people, what we are saying is that let there be light.”
Oduntan maintained that if the distribution companies were denied the right to appropriate pricing of electricity tariffs, they would not remit the required sum needed to generate power to the generation companies, adding that this would eventually bring down the whole value chain.
He said: “We are not going to reverse the tariff because we have appealed (the court judgment). When you give a judgment at the Federal High Court, I can still go to the Court of Appeal. From the Court of Appeal if I’m not satisfied, I can go to the Supreme Court, which is why we have these layers in our jurisprudence. Whatever is said at the Supreme Court is said with finality and that is where we will head to at the end of the day if we don’t get justice at the Court of Appeal.”
The Discos and the Nigeria Electricity Regulatory Commission, NERC, also shared the same view with the ANED. They believed that the reversal of the new tariff would lead to a total collapse of the sector. This stand made the Discos and the NERC to file separate appeals against the court ruling.
Tony Akah, acting chairman, NERC, admitted that the reversal in tariff would impact negatively on the power distribution companies in particular and on the sector in general. He said, “There is no doubt that it is going to be inimical to the development of the power sector and it will have a ripple effect on the whole economic development of this country. But be rest assured that as soon as we get the full content, we are going to make appropriate communication to that effect.”
The Federal High Court in Lagos had on Wednesday, July 13, annulled the hike in electricity tariffs announced by the NERC last year. The presiding judge, Justice Mohammed Idris, while delivering judgment in a suit filed by Toluwani Yemi Adebiyi, human rights lawyer, described NERC’s action as procedurally ultra vires, irrational, irregular and illegal.
The judge while relying on Sections 31, 32 and 76 of the Electricity Power Sector Reform Act, EPSRA, in deciding the substantive suit held: “NERC acted outside the powers conferred on it by the Act and failed to follow the prescribed procedure.”
The court was also of the view that NERC did not show that it acted in due obedience to the prescribed procedures and that there was no evidence that NERC complied with Section 76(6)(7) and (9) of EPSRA. The court further held that of all the legal requirements, it appeared the only one complied with by NERC was that it announced the new tariffs in the newspapers.
The judge consequently ordered NERC to immediately revert to status quo. He also restrained the commission from further increasing electricity tariffs except it complies strictly with the relevant provisions of the EPSRA. “It is clear from the affidavit evidence that the increase in tariffs was done by NERC in defiance of the order of this court made on May 28, 2015, which directed parties in the case to maintain the status quo. The law is that every person upon whom an order is made by a court of competent jurisdiction must obey it, unless and until the order is discharged and set aside at the appeal.”
Consequently, the court held that the tariff increase from July 1, 2015, was done in breach of the status quo order, saying that NERC’s action was hasty, reckless and irresponsible. “This country is in a democracy where the rule of law shall prevail over impunity or whimsical desires. Anything to the contrary will be an invitation to anarchy.
“It is the law that what is done officially must be done in accordance to the law. Investors are free to do business in Nigeria but they shall abide by the law of this country. Nigeria is not a kangaroo state. Nigeria is not a banana republic. It is intolerance and extremely dangerous for any branch of the executive to create a posture that it may not obey certain orders of the court. That is tantamount to executive recklessness which will lead to lawlessness.”
In view of these, the court while invoking its disciplinary jurisdiction, made the following orders: “The increment in electricity tariffs which took effect after the institution of this action and while a restraining order is subsisting is hereby declared illegal and same is hereby set aside. NERC is hereby directed to revert to the status quo and the commission is hereby restrained from further increasing electricity tariffs except it complies strictly with the relevant provisions of the EPSRA.”
|
Tags:
